Please note: Reliance Property Loans administers existing mortgages and second charge loans, but does not provide new mortgages.

Libor FAQs

You may be aware of the Financial Conduct Authority’s (the FCA) announcement that LIBOR will cease to be published in its current form from the end of 2021.

LIBOR stands for London Interbank Offered Rate and is a reference rate set independently of us by ICE Benchmark Administration Limited. You can find out more information about LIBOR at www.theice.com/iba/libor.

As LIBOR ends in its current form we’ll need to replace this as the basis for calculating the interest rate with a new reference rate if the interest rate you pay on your mortgage, or pay at the end of any fixed rate period, is linked to LIBOR.

Frequently asked questions

 

These frequently asked questions have been prepared to support you during the transition away from LIBOR as a reference rate. We may update these during the transition period and will publish any updates here.

The information below seeks to provide general guidance, the contents are not specific to your individual circumstances.

Further information is available from the Financial Conduct Authority and UK Finance websites.

If you have any questions please contact us on 01634 838976 and we’ll be happy to help.

The London Interbank Offered Rate (LIBOR) is an indication of the average rates at which banks could obtain unsecured funding, and for many years has been used globally as a key interest rate benchmark across a wide range of financial products, including mortgages.

The aim of LIBOR is to measure the interest rate at which banks can borrow from one another. LIBOR relies on information about markets which will no longer be available from banks. Therefore, LIBOR is no longer considered sustainable and is being phased out.

LIBOR is due to end in its current form by the end of 2021. 

All mortgage lenders are working to switch mortgages to an alternative reference rate before LIBOR becomes unavailable in its current form.

We’re replacing LIBOR with 3-Month Term SONIA (Term SONIA) plus 0.1193%.

We’ve chosen Term SONIA because it’s an interest rate benchmark that’s been developed as one of the alternative reference rates to replace LIBOR in some products. 

The adjustment of 0.1193% is needed to reflect the difference in the way LIBOR and Term SONIA work and to ensure the new rate performs in a similar way as LIBOR would’ve done over the term of your mortgage. This adjustment will be fixed at 0.1193% for the remaining term of your mortgage.

We consider this will be a fair replacement rate and it is the revised methodology that the FCA are proposing be used to calculate LIBOR for a limited period after 31 December 2021.

SONIA stands for the Sterling Overnight Index Average. Term SONIA is publicly accessible and is calculated by an independent body, in this case ICE Benchmark Administration Limited.

You can find out more about how Term SONIA is calculated here: https://www.theice.com/iba/risk-free-rates#sonia.

The FCA has made it clear that LIBOR transition should not be used to move customers with LIBOR linked mortgages to replacement rates that are expected to be higher than LIBOR would’ve been, or otherwise introduce inferior terms.

In addition, the FCA doesn’t expect mortgage lenders to be worse off as a result of replacing LIBOR with an alternative rate.

Because of the difference in the way LIBOR and Term SONIA work, to ensure the fair conversion of existing contracts, a small adjustment is needed to account for this difference. Further information about this adjustment (often referred to as a credit adjustment spread) is available on the Bank of England website:

https://www.bankofengland.co.uk/-/media/boe/files/markets/benchmarks/rfr/what-is-credit-adjustment-spread-supporting-slides.pdf

This reflects the revised methodology that the FCA are proposing be used to calculate LIBOR for a limited period after 31 December 2021.

The adjustment we’ll apply to your mortgage is 0.1193%

We consider this fair because it reflects the average difference between 3-Month LIBOR and 3-Month Term SONIA over an historical five year period, has been calculated using an approach which has consensus and acceptance across the financial services industry and is the same adjustment which we expect will be used in the calculation of LIBOR for a limited period after 31 December 2021. 

If you want to know more about how this adjustment is calculated, please see the explanatory documents on the Bank of England website:

https://www.bankofengland.co.uk/-/media/boe/files/markets/benchmarks/rfr/what-is-credit-adjustment-spread-supporting-slides.pdf

LRR will replace LIBOR as the basis for calculating the interest rate you pay on your mortgage.  Following the switch, the interest rate charged on your mortgage will be LRR (which is 3-Month Term SONIA plus the adjustment of 0.1193%) plus the existing margin stated in your mortgage agreement.

A diagram showing how your new interest rate will be calculated is below:


This is subject to any minimum interest rate (the interest rate ‘floor’), and/or any minimum rate for LIBOR and LRR as set out in your mortgage agreement.

LRR will be rounded up to two decimal places.

If you don’t want to accept LRR replacing LIBOR in the calculation of the interest rate on your mortgage you can repay your mortgage in full at any time or remortgage to another provider. 

If you’re considering one of these options, please contact us. We can provide you with a redemption statement that will explain the amount that needs to be repaid and any early repayment charges that may apply.

You may wish to get financial advice when deciding what is the best option for you.

The Money Helper website https://www.moneyhelper.org.uk/en provides free and impartial financial guidance that’s backed by the government, and has details of independent financial advisors should you wish to discuss the replacement of LIBOR and how this impacts you.  Alternatively, you can call them on 0800 138 7777 between 8am and 6pm, Monday to Friday.

The FCA has acknowledged that despite lenders’ efforts to replace LIBOR in mortgage contracts, there may be some cases where this doesn’t happen before the end of 2021.

The FCA is consulting on a temporary solution for certain products, which may include mortgages, that haven’t changed by that time to continue to use LIBOR based on a changed methodology – you may see this referred to as ‘Synthetic LIBOR’. It’s still unclear whether we’d be able to use Synthetic LIBOR to calculate the interest rate on your mortgage (if it is published).

Also use of Synthetic LIBOR would be a time-limited solution, so any switch to Synthetic LIBOR would only be temporary, so it’s likely your mortgage would still have needed to switch to an alternative rate in the future.

So we’re making this change now to give you certainty about how the interest rate on your mortgage will be calculated beyond the end of 2021. 

We’re replacing LIBOR with a reference rate that is calculated in the same way as we expect Synthetic LIBOR will be calculated, so you shouldn’t be disadvantaged by this change.

We’re not making any other changes to how and when we re-calculate the interest rate you pay, we’ll simply use LRR instead of LIBOR to make that calculation.

For example, if your mortgage agreement provides that the interest rate you pay will be a margin above LIBOR and recalculated quarterly based on the LIBOR rate on that day, we’ll continue to recalculate the interest rate you pay on those scheduled dates, but by adding the margin to the LRR on that day rather than the LIBOR rate on that day.

Your terms and conditions will explain how and when we recalculate the interest rate you pay and whether there’s any minimum interest rate (the interest rate ‘floor’), and/or any minimum rate for LIBOR which will apply to LRR.

The FCA has made it clear that LIBOR transition shouldn’t be used to move customers with LIBOR linked mortgages to replacement rates that are expected to be higher than what LIBOR would’ve been, or otherwise introduce inferior terms.

Like LIBOR, LRR is a variable rate, so we‘ll tell you about any changes to LRR and the impact on your monthly payments in the same way we would’ve done for changes to LIBOR.

We’re replacing LIBOR with a reference rate that is calculated in the same way as we expect LIBOR will be calculated for a limited period after 31 December 2021 and we expect LRR to perform in a similar way to LIBOR so you shouldn’t pay more over the term of your mortgage than you would’ve done had we not moved to LRR to calculate the interest rate you pay.

We’re unable to tell you at this time exactly what the interest rate or monthly mortgage payment will be when we first recalculate the interest rate you pay using LRR as, like LIBOR, LRR is a variable rate, so it’s likely to change before then.

We’ll write to you before your first payment based on LRR to tell you interest rate that will apply and how this affects your monthly payment.

Although the proposed amendments to your mortgage agreement will take effect from 1 January 2022, interest on your mortgage won’t begin to be calculated using LRR until your quarterly interest period ends for the first time in 2022. 

Let’s say that your current 3-Month LIBOR linked mortgage has the interest rate set every quarter on the 1 January, April, July and October and is based on LIBOR on the 15th of the preceding month. We’ve shown how this will work below:


Like LIBOR, LRR is a variable rate, so we’ll tell you about any changes to LRR and the impact on your monthly payments in the same way as we would’ve done for changes to LIBOR.

Fixed Rate Products

If you currently pay a fixed rate of interest then your interest rate won’t change until the end of the fixed period. At the end of the fixed rate period the variable interest rate which will apply to your mortgage will be based on LRR rather than LIBOR unless the fixed rate period ends before 31 March 2022, in which case the variable rate may initially be based on LIBOR until the first quarterly scheduled interest rate reset date after 1 January 2022.

No. You’ll continue to receive all communications as normal. After 31 December 2021 the only change you’ll notice is these communications will begin to refer to LRR instead of LIBOR.

When we refer to LRR in future communications this is calculated as explained fully in the Appendix 1 to the letter we sent telling you about this change.

You may receive some communications referencing LRR prior to your interest rate being recalculated using LRR for the reasons explained in question 12 above.

If you’re looking for more detailed information about LIBOR; the following links from industry bodies and organisations may be useful:

Financial Conduct Authority

UK Finance

Privacy Policy

Reliance Property Loans is committed to keeping your information private. By your information, we mean any personal information about you that you provide to us or which we obtain through our dealings with you or in connection with your account. This policy relates to the privacy of your information at reliancepropertyloans.co.uk.

About Reliance Property Loans

Reliance Property Loans is a trading name of OneSavings Bank plc. OneSavings Bank plc is a company registered in England and Wales (company number 7312896), whose registered office is Reliance House, Sun Pier, Chatham, Kent ME4 4ET. OneSavings Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (registered no. 530504).

We respect your right to privacy. If you have any questions about how Reliance Property Loans uses your information, then please write to the Data Protection Officer at Reliance Property Loans, PO Box 6810, Wolverhampton WV1 9WQ.

How we use information about our customers

If you are a customer of Reliance Property Loans then we will also hold and use your information for the additional purposes disclosed to you within the application forms and/or terms and conditions applicable to the products and services that you hold.

Who may access your information

We may share your information with our related entities and service providers acting on our behalf in connection with the purposes described in this policy.

We may also disclose your details where required to do so by law, as well as to any successors in title to our business. Finally, we may share your information with third parties (including law enforcement agencies) to protect both ourselves and our customers against theft or fraud, and with anyone you appoint to administer/operate your account on your behalf.

Information we may collect from you

As a visitor to our site, we may collect and process any personal information that you voluntarily submit to us through the site. This may include online correspondence that you send to us about our products and services, as well as your contact details so that we may contact you for support, marketing or other purposes.

In addition, we may also collect anonymous information about visitors to our site and the resources that they access, so that we can make sure the site is meeting our and your needs. However, this information will not enable any visitor to be identified as an individual.

How we use your information

We will use your information to make the site available to you. From time to time, we may use and disclose your information for marketing purposes where your marketing preferences permit us to do so.

Use of Cookies

Cookies are small text files that web servers can store on your computer's hard drive when you visit a website. They allow the server to recognise you when you revisit the website and to tailor your web browsing experience to your specific needs and interests.

For more information about how we use cookies, please see our Cookies policy.

Links to third party sites

Our site may, from time to time, contain links to and from third party websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

International transfers

From time to time, we may transfer your information to third party service providers or to businesses within the OneSavings Bank plc Group that are based in territories located outside of the European Economic Area (EEA). We will only transfer your information to recipients outside of the EEA for the purposes described in this privacy policy and take measures to ensure that your information will only ever be used and protected in accordance with this privacy policy.

Your rights

The Data Protection Act 1998 gives you certain rights to access, update and control the information we hold about you.
In particular, you have the right:

  • To request a copy of the personal information that we hold about you. Any such request may be subject to a fee specified by law (currently £10) in respect of our costs in providing you with details of the information we hold about you;
  • To correct or update inaccurate or out-of-date information that we hold about you; and
  • To instruct us not to send you any further marketing communications (even if you have previously asked us to contact you for marketing purposes).

If you wish to exercise any of the above rights, please call 0333 240 6131*

Changes to our privacy policy

We may change this privacy policy from time to time. Any changes we may make in the future will be posted on this page and we recommend that you revisit this page from time to time to stay informed about how we use your information.

This privacy policy was last updated in July 2013.

* For customer service and training purposes, calls may be monitored and recorded.

Terms & Conditions

There are some rules we need to explain so you know where you stand when you do business with us. You may also like to look at our privacy policy and cookies policy.

These rules are set out below: please make sure you read them carefully.

Reliance Property Loans

Reliance Property Loans is a trading name of OneSavings Bank plc. OneSavings Bank plc is a company registered in England and Wales (company number 7312896), whose registered office is Reliance House, Sun Pier, Chatham, Kent ME4 4ET. OneSavings Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (registered no. 530504).

In these terms and conditions when we use the words "we", "us" and similar expressions we are referring to OneSavings Bank plc.

Website terms and conditions

Please read these terms and conditions carefully.

When you use this website you are agreeing to and accepting these terms and conditions and any other terms and conditions posted on this website by OneSavings Bank plc from time to time. We may change these terms and conditions at any time, simply by updating this page. You should therefore check these terms and conditions regularly, as we will consider that your use of the site after any changes means that you accept the new terms and conditions.

These terms and conditions only cover your use of the site. Our products have their own terms and conditions. If the product terms and conditions are different from the site terms it is the product ones that apply.

Use of this website

The information on this site is written for UK residents only.

Copyright and trademarks

OneSavings Bank plc does not give you any right or interest in any copyright or other intellectual property rights in any materials made available through this website. You may download or copy extracts for your personal use but not for any other purpose, nor do you have the right to alter anything.

The copyright and related rights in this website and all the underlying or related software, materials and pages relating to this website is owned by, or licensed to, OneSavings Bank plc and may not be used, copied or altered without our express consent. Copyright extends to the design and layout of the website, all text, html code, metadata and photographs on it and its related marketing materials.

Disclaimer

This website may contain information, text, data, graphics, photographs, illustrations, artwork, names, logos, trademarks and information about OneSavings Bank plc and on the products and services it provides (the "information").

The website and information is provided "as is" and on an "as available" basis only and OneSavings Bank plc does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of the website or any of the information. No responsibility is accepted by or on behalf of OneSavings Bank plc for any errors, omissions, or inaccuracies in the information on the website.

Although OneSavings Bank plc attempts to ensure that the information contained in this website is accurate and up-to-date, we accept no liability for the results of any action taken on the basis of the information it contains and all implied warranties, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement, compatibility, security and accuracy are excluded from these terms and conditions to the extent that they may be excluded as a matter of law. We do not attempt to exclude any rights you may have that we cannot exclude as a matter of law.

Except in respect of death or personal injury resulting from our negligence or in respect of fraud, none of OneSavings Bank plc, its directors, employees or other representatives will be liable for any loss or damage you suffer including, without limitation, indirect or consequential loss or damage, loss of revenue or profit (whether direct or indirect) or any loss or damage arising from loss of use or data, whether in contract, tort, negligence or otherwise, arising out of or in connection with the use of this website. However, this will not limit our responsibility for complying with any duty or liability which we have towards our customers under the regulatory system.

Availability

We try to make sure that the site is available all the time. However, we do not undertake that the performance of the website will be uninterrupted or error free or that any defects will be corrected. We are not liable for the site being unavailable, however long it might be out of action. Consequently, we will not be liable for any loss or damage arising in contract, tort, negligence or otherwise if the website becomes unavailable or is suspended for any reason.

Viruses

Although we endeavour to ensure that the website is virus-free, we cannot warrant to you that the website will remain free from viruses and, therefore, we will not be responsible for any technical problems arising from the use of this website.

Offer and advice

The services provided on this website do not constitute an offer to sell any of our products; neither does the information constitute financial, investment, tax or other professional advice.

Linking

Websites to which this website is linked have not been reviewed by OneSavings Bank plc. We accept no responsibility for the content of such websites. You may not frame, link or deep-link this website to any other website without our prior written consent.

Data protection

When you use this website we will obtain some of your personal information, please refer to our privacy policy to understand how we will process, use and store your personal information.

Cookies

Please see our Cookies policy for details of how we use cookies on this site.

Applicable law and jurisdiction

Use of this website and these terms and conditions are subject to the laws of England and Wales and the jurisdiction of the English Courts. By using this website you irrevocably submit to the jurisdiction of the English Courts.

About us

OneSavings Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is included on the FCA's register of authorised firms registered number 530504.

The FCA's register of authorised firms can be found at www.fca.org.uk/register.

The address of the FCA is 25 The North Colonnade, Canary Wharf, London, E14 5HS.

OneSavings Bank plc participates in the Financial Ombudsman Service (FOS). If you have a complaint about any aspect of our services, please see our leaflet How we'll put things right.

If you are not satisfied with our final response you may be able to refer your complaint to the FOS. If you would like more information about the FOS, please contact us.

Alternatively, visit their website: www.financial-ombudsman.org.uk or telephone them on 0800 023 4567.

*For customer service and training purposes, calls with OneSavings Bank plc may be monitored and/or recorded.

Cookie Policy

What are cookies?

This website, in common with most other websites, uses cookies. Cookies are small text files that web servers can store on your computer’s hard drive when you visit a website. Websites typically use cookies to ensure that you see the content you want when you go back to a site, to enable you to see protected content when you have logged in with a user name and password or to remember what you have put into your shopping cart when you are online shopping.

Cookies are stored on your computer – they are not associated with an individual, just with the browser that is being used. That's why information you may view on your work computer is not remembered when you go home. They do not store personally identifiable information.

Session or persistent cookies

Some cookies are session cookies. This means they are deleted when you close your web browser (that is Internet Explorer, Firefox, Safari etc). These are the cookies typically used when you log into a bank or make an online purchase.

Other cookies are persistent. This means they remain on your computer until they expire. This can be a fixed time after you have visited the website (eg one year) or a particular date (eg 31 December 2015). These cookies are used to remember information between visits to a website. For example, if you tell the BBC website to remember which weather forecast you want to see, it will use a cookie to remember that.

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First party cookies are set by the site you are visiting. In the example above the cookie would be set by the BBC. They are only read when you go back to the same site again.

Third party cookies are set by someone other than the site owner. These may be set by agencies who have placed adverts on a site you visit, by analytics programs that help site owners know how well their site is working and similar organisations. If you go to another site that uses the same advert provider, the cookie may be read again, and the advertising agency will be able to recognise that the same computer has visited this site too. This information is generally used by agencies to target adverts so that you are more likely to see adverts for products you are interested in.

Use of cookies by Reliance Property Loans

First party cookies

We do not use first party cookies on this site.

Website analytics

We use third party website analytics providers to monitor visitor traffic to our site to supply website reporting and analytics. This gives us information about the pages on our site that visitors view, where our visitors come from (for example, whether they were directed to our site by a search engine), how long they choose to stay on the site, the types of browsers they use and so on.

We use this information to enhance our website offering so that we give our users the best possible experience on the site and to monitor the effectiveness of our marketing activities. However, this information is provided in anonymised, aggregate form only. It does not enable you or your activity on our site to be individually identified.

We use the following website analytics provider:

Google Analytics

The Reliance Property Loans website uses Google Analytics, a web analytics service provided by Google, Inc. Google Analytics sets a cookie in order to evaluate your use of our website. The information collected by Google Analytics helps us to understand how people use our website, what technologies they use, whether they have followed a link or carried out a search to find the site and which pages are most popular. It does not give us individually identifiable information about your interaction with the site.

Google stores the information collected by the cookie on servers in the United States. Google may also transfer this information to third parties where required to do so by law or where such third parties process the information on Google's behalf. Google will not associate your Internet Provider (IP) address with any other data held by Google. By using this website, you consent to the processing of data about you by Google in the manner and for the purposes set out above.

To find out more about the Google Analytics cookie and to reject or delete this cookie, you can visit the Google Privacy site at http://www.google.com/intl/en/privacypolicy.html

Reliance Property Loans will not use cookies to collect personally identifiable information about you. However, you have the right to disable or delete cookies. If you wish to restrict or block the cookies which are set by us, or indeed any other website, you can do this through your browser settings.

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