Libor Rate
Libor stands for the 'London Inter Bank Offered Rate'.
The Libor rate is essentially the interest rate at which banks lend to each other.
The rate is a key indicator of the availability of funds.
Since the onset of the credit crunch, the Libor rate has been at historically high levels due to the unwillingness of banks to lend to each other.
Although not directly linked, the Libor rate does impact on lender's standard variable rates, as it reflects the availability of money which lenders need to subsequently lend to mortgage borrowers.
