Libor is the acronym given to describe “London InterBank Offered Rate which is the interbank interest attributed to financial activities established across England, this can be defined more precisely as the interest paid for loans offered by some banks others in that country. Today the libor is extremely important in economic activity not only to global (financial institution) but also locally (users), since this interest is one of the most influential in determining interest rates financial activities as important as mortgages and bank loans. It is very important to mention when talking about libor interest that is constantly changing, it is determined largely by the demand of credit and money supply in England mainly. Another important thing you can give is that the Libor with other interest rates such as MIBOR Euribor and are observed globally to set interest rates in other countries. Currently the influence Libor in the mortgage lending activities such as making this an excellent option to purchase one of them, since this rate of interest is listed as one of the most stable worldwide.
The Libor can be obtained in several installments between which highlights some as Libor 6 months: this interest rate is mainly characterized by providing the opportunity to be paid monthly or bimonthly basis, however the best option to take into account When choosing what type of interest we will comply will the cancellation of this month, since this manea avoid variations thereof that may affect a large scale. Libor 12 months: Libor such offers people the opportunity to be paid bi-monthly or quarterly basis, however as mentioned it is best to cancel this as soon as possible. Libor 18 months: this occurs mainly libor to the public or persons primarily investors, since it applies generally to pay much larger. The Libor cancellation of this can be done every 3 or 6 months. It is important to mention some of the major banks have the option of Libor in London, as there is the epicenter of the use of that interest. Some of these banks are: Bank of England. Lloyds TSB Bank PLC.
National Bank. Harrods Bank. EUROPENE Investment Bank. Pimlico Finance Bank. LOM (UK) Limited. Although there are some others that have the Libor, the aforementioned are just some of the most remarkable in London. It is important to mention that thanks to the advantages provided by the libor, some other South American countries, especially those that are implementing in their financial interest, as this offers a better option for both lenders and creditors of such credits.