Residential Mortgage Contract Libor Tracker

In a nutshell:

A Lifetime Tracker mortgage available in Sterling, Euro, US Dollar, Hong Kong Dollar, Swiss Franc, Japanese Yen and Singapore Dollar which tracks Libor.

What is libor?

Libor stands for the London Inter Bank Offered Rate and is the main setter of interest in the London wholesale money market. Unlike bank rate, which is set directly by the Bank of England, Libor rates are set by the demand and supply of money as banks lend to each other to balance their books on a daily basis.

Libor covers lending from overnight up to 12 months and is used to price all kinds of financial instruments such as loans and floating-rate mortgages. Loans in other currencies are also priced relative to Libor.

Suitable for:

Any one of the following categories wishing to purchase or remortgage a UK residential property for their own use or occupational by their immediate family or indeed wishing to release equity in their property for any legitimate purpose:

• UK resident / Non UK domiciled
• UK resident / Not Ordinarily Resident (NOR) for UK tax purposes
• Non UK resident (either a UK expatriate or a foreign national residing outside the UK)
• UK resident / UK domicile (in certain circumstances).
  

Key features:

• Minimum loan of £400,000 (or currency equivalent).
• 3, 6 and 12 month Libor Interest Periods available.
• Borrow up to 70% of the professional valuation of the property or purchase price, whichever is lower.
• Option to repay your mortgage early.
• Choice of interest only or repayment options.
• A link must exist between the applicant's personal circumstances and the currency of the mortgage requested i.e. a proportion of their income and/or assets must originate or be held in the currency of the mortgage requested.

Your home may be repossessed if you do not keep up repayments on your mortgage. Changes in the exchange rate may increase the Sterling equivalent of your mortgage.

*Minimum Arrangement Fee to be retained by the Bank

An Early Repayment Charge equivalent to 1 month's interest calculated on the outstanding balance + any breakage costs* + £250 administration fee will apply if the mortgage is repaid within the first 3 years. Thereafter, any breakage costs + £250 administration fee will apply.

*Breakage Costs - any loss, cost or expense incurred by the Bank in connection with any prepayment  prior to the last business day of the applicable Interest Period).

Please contact us if the Mortgage amount exceeds £2,000,000 or the Loan to Value ('LTV') is below 70% as preferential pricing may be available.

Rates and fees quoted are correct at 13th October 2008. Terms and conditions apply. The actual rate available will depend upon your circumstances. Please ask for a personalised illustration.

Call +44 (0)1624 644080 for more information.