LIBOR - based residential and buy - to - let mortgages in the UK account for about 1 - 2 % of outstanding loans , an estimated 200,000 homes . Lenders and administrators of mortgages extended beyond 2021 need to carefully consider their strategy to ensure that changes are clearly explained and the appropriate consents obtained from customers . The impact assessment should examine LIBOR-linked activities (processes, systems etc.) The structural difference between LIBOR and default creates potential conduct risk issues , legal issues and reputational damage if customers and counterparties feel disadvantaged by the new rate .
LIBOR - based residential and buy - to - let mortgages in the UK account for about 1 - 2 % of outstanding loans , an estimated 200,000 homes . Lenders and administrators of mortgages extended beyond 2021 need to carefully consider their strategy to ensure that changes are clearly explained and the appropriate consents obtained from customers . The structural difference between LIBOR and default creates potential conduct risk issues , legal issues and reputational damage if customers and counterparties feel disadvantaged by the new rate .