SARON replaces Libor
The Libor reference rate, which is currently the basis for money market mortgages, will be replaced by SARON at the end of 2021. SARON (Swiss Average Rate Overnight) is a short-term money market rate calculated based on transactions and quotes posted on the Swiss repo market. This change will have a major impact worldwide, especially on the mortgage market. We will start offering our clients UBS SARON Mortgage during the course of 2020.