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  #21  
Old 28.06.2012, 16:21
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Re: CHF 3-month LIBOR still creeping up

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LIBOR is typically a function of Inflation and Nominal GDP growth.

So if the economy slows then rates will stay low. The issue Swiss residents have to be worried about is that of the swap rate market. The banks in Switzerland are bust. UBS and CS cant be saved by the SNB, who only has a balance sheet of CHF20Bn (about the size of Luzerner Kantonal Bank).

So even if Swiss LIBOR stays low the swap market will mean that Swiss banks will have to charge mortgages an additional 200bps premium etc etc on their mortgage rate. It all depends on when banks pull their lines of credit.

Once Swiss mortgage rates drop again I would suggest locking in your mortgage for as long as it will go.
10 years lock in is available now @ 2% or less. Is it worth waiting longer?
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  #22  
Old 28.06.2012, 16:23
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Re: CHF 3-month LIBOR still creeping up

wow, good point..... I guess thats as close to free money as one can get!

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10 years lock in is available now @ 2% or less. Is it worth waiting longer?
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  #23  
Old 29.06.2012, 15:45
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Re: CHF 3-month LIBOR still creeping up

Fly me to the moon......


29 June 2012 Last updated at 12:26 GMT

FSA finds banks guilty of mis-selling to small firms

http://www.bbc.co.uk/news/business-18640101
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  #24  
Old 29.06.2012, 16:04
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Re: CHF 3-month LIBOR still creeping up

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Barclays got fined £390M today for fixing LIBOR interest rates.
Knees must be trembling at the " Swiss banks continue being investigated for "fixing" Libor rates"
Since mortgage & credit card interest rates are linked to Libor then I wonder if we can sue somebody for compensation for any losses??
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  #25  
Old 29.06.2012, 16:14
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Re: CHF 3-month LIBOR still creeping up

You sure can!!

Unless the day has a "Y" in it's spelling.

You didn't read the small print on that contract....did you?

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Since mortgage & credit card interest rates are linked to Libor then I wonder if we can sue somebody for compensation for any losses??
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  #26  
Old 29.06.2012, 16:18
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Re: CHF 3-month LIBOR still creeping up

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Since mortgage & credit card interest rates are linked to Libor then I wonder if we can sue somebody for compensation for any losses??
Mortgages & Credit card rates have very little connection with LIBOR, mortage rates used to be connected fairly closely but have not for several years. Credit Card rates have no connection, just what the market will bear.
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  #27  
Old 29.06.2012, 16:24
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Re: CHF 3-month LIBOR still creeping up

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Mortgages & Credit card rates have very little connection with LIBOR, mortage rates used to be connected fairly closely but have not for several years. Credit Card rates have no connection, just what the market will bear.
Then why is my mortgage rate named 3 month LIBOR; glad to learn.
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  #28  
Old 29.06.2012, 16:26
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Re: CHF 3-month LIBOR still creeping up

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You sure can!!

Unless the day has a "Y" in it's spelling.

You didn't read the small print on that contract....did you?
No small print will protect a supplier from the results of their own criminal activities - if the supplier is proven to have......
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  #29  
Old 29.06.2012, 20:50
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Re: CHF 3-month LIBOR still creeping up

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Then why is my mortgage rate named 3 month LIBOR; glad to learn.
So are your telling me you will NEVER pay more than 3 month LIBOR, or is this a short term thing you have entered into, which is available now, but not guaranteed to be availavle in the future.

Just look SVR's in the UK, many over 9 times base rate.

Can you point me to ANY credit card rate where the interest rate is linked to LIBOR?
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  #30  
Old 16.07.2012, 10:43
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Re: CHF 3-month LIBOR still creeping up

part of my mortgage is also a spread over 3 month LIBOR.
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  #31  
Old 16.07.2012, 11:38
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Re: CHF 3-month LIBOR still creeping up

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Mortgages & Credit card rates have very little connection with LIBOR, mortage rates used to be connected fairly closely but have not for several years. Credit Card rates have no connection, just what the market will bear.
My mortgage is directly linked to LIBOR (3-month LIBOR + 1.2%). It was my understanding that this is how most variable-rate mortgages work in Switzerland?
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  #32  
Old 16.07.2012, 12:00
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Re: CHF 3-month LIBOR still creeping up

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My mortgage is directly linked to LIBOR (3-month LIBOR + 1.2%). It was my understanding that this is how most variable-rate mortgages work in Switzerland?
1.2% add-on is high, 1% or less is/was quite common.
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  #33  
Old 16.07.2012, 12:05
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Re: CHF 3-month LIBOR still creeping up

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1.2% add-on is high, 1% or less is/was quite common.
LIBOR mortgage - best spread
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