12 Jun

Libor changes may have 'positive impact' on mortgage market

Libor changes may have 'positive impact' on mortgage market

Changes to the London Interbank Offered Rate (Libor) could have a positive impact on the mortgage market, a spokesperson for Moneyfacts.co.uk has suggested.

Darren Cook made his comments following the announcement of a number of changes to the Libor, which sets the interest rate at which banks lend to each other.

The British Banker's Association (BBA) revealed that from now on there will be a larger number of contributors to the rate-setting panels, wide membership of the Foreign Exchange and Money Markets Committee and tighter scrutiny of the rates contributed by banks into the setting mechanism.

Mr Cook suggested that "under current market volatility, tighter scrutiny of the BBA Libor rate contributors will strengthen views and confidence of this index as being a true reflection of current sentiments within the financial markets".

He added that he hoped this would increase mortgage products' shelf life.

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