Finance House Base Rate Increases to 6.5%

[Jamie Garside]

Source: www.fla.org.uk

Quote:

Finance House Base Rate (FHBR) is 6.5% for November 2008
Last Updated: 31 October, 2008

The FHBR will be 6.5% for November 2008, which represents an increase of 0.5 percentage points on October 2008.

Three-month money costs in the interbank market rose sharply in the second half of September as the turmoil in financial markets intensified. In October, sterling three-month LIBOR has fallen slightly but is currently 134 basis points above Bank rate. Based on current trends, FHBR is likely to fall back to 6.0% for December 2008.



This does not affect any Performance Car Finance customers as we always linked to Bank Base rate.

Anyone who took out a variable rate Lease Purchase Balance Payment plan with Porsche Financial Services before April this year is more than likely linked to FHBR and will therefore feel the affect of this increase at the end of the agreement.

Most consumer deals are now fixed rate in nature and loosely priced against LIBOR which has been creeping down over the last few weeks from its dizzy highs not so long ago.

 

[jason]

ORIGINAL: Jamie Garside


This does not affect any Performance Car Finance customers as we always linked to Bank Base rate.

Or Lombard customers who are linked to BOE rates also...[]

Or probably quite a few others...[]

 

[ScottishSpyder]

Apoligies if this is too off topic but my finance ends early next year and the balloon payment is due. The car has only done 10K miles and I would like to keep it. Where can you get competitive finance facilities when there is no dealer involvement. I don't want to put it on my mortgage .

 

[Dylan1]

Where can you get competitive finance facilities when there is no dealer involvement.

i would ask jamie!!!
lots of folks here have been pleased with his help

 

[Jamie Garside]

Lawrence,

Sorry we missed each other last week on the phone, have just sent you an e-mail.

We can re-finance balloon payments when they are due, we typically won't re-finance mid-term (there are some exceptions). One thing to note would be that if the balloon exceeds the book valuation of the car, then the third party finance company will want a capital deposit to bring the advance in line with today's value.