Hi all
Just wondering if there should be a difference between the ECB rate (3.75%) and the EURIBOR when applying for a commercial mortgage. If so what is the reason for it?
A friend of mine received info from the bank quoting a cost of funds of 3.9% as per EURIBOR with their margin added onto it. This is obviously in excess of the base rate of 3.75% as per the ECB.
I did not see the documentation myself but was told this by my friend .......... any comments welcome. I know I am probably missing something obvious.
thanks in advance
Just wondering if there should be a difference between the ECB rate (3.75%) and the EURIBOR when applying for a commercial mortgage. If so what is the reason for it?
A friend of mine received info from the bank quoting a cost of funds of 3.9% as per EURIBOR with their margin added onto it. This is obviously in excess of the base rate of 3.75% as per the ECB.
I did not see the documentation myself but was told this by my friend .......... any comments welcome. I know I am probably missing something obvious.
thanks in advance