General - FAQs

Transition of mortgage accounts which referenced LIBOR to now reference Bank Base Rate is complete

LIBOR ceased on 31 December 2021.

As we are required by our regulator to move all our customers’ mortgage accounts where the interest rate is calculated with reference to LIBOR to an alternative reference rate, we have now transitioned those mortgage accounts from referencing LIBOR to now referencing the Bank of England base rate (BBR).

  • What is LIBOR?

  • How is Foundation Home Loans making the transition away from LIBOR?

  • Why do lenders have to move customers away from LIBOR rates?

  • What does this mean for the affected borrowers?

  • Why will the interest rate on these mortgage accounts reference Bank of England Base Rate (BBR) following the cessation of LIBOR?

  • On what date will affected mortgage accounts be switched to the alternative reference rate?

  • How was the rate previously calculated?

  • What if the borrower is currently on a fixed rate?

  • How can borrowers calculate what their monthly payments are after April 1st?

  • What is LIBOR rate now?

  • What is synthetic LIBOR now?

  • What is Bank Base Rate now?

  • Will borrowers pay the same amount as they did previously?

  • To avoid transitioning, can borrowers repay their mortgage early without penalty?

  • What if a borrower does not want to change their mortgage terms and conditions?

  • Will the borrowers’ mortgage documentation need to change?

  • How do I know if my clients’ mortgage currently references LIBOR?

  • Does this affect new mortgage applications?

  • If I have any further questions, who do I contact?

  • Where can I find more information?