Libor mortgage

Mortgage with a flexible interest rate

A Libor mortgage is based on the money market and is subject to interest rate fluctuations. This type of mortgage is particularly attractive when interest rates are low or falling.

Libor mortgage at a glance


3 years

Interest rate

Dependent on the chosen fixed-rate period (3 or 6 months)


Interest rates fluctuate over the lifetime of the mortgage

A Libor mortgage is based on the Swiss franc Libor. The Swiss franc Libor is the inter-bank interest rate for short-term funds in Swiss francs and it reflects the general level of interest rates for short-term funds in Swiss francs. You can set up a Libor mortgage at any time; when you do so, you select a specific fixed interest rate period. At the end of this period, the interest rate is then adjusted to current conditions on the money market, i.e. the Swiss franc Libor. The interest rate is comprised of the CHF Swiss franc Libor rate plus a fixed margin.

Due to the short fixed interest period, in a normal interest environment the interest paid is lower than for a longer term loan.

What will happen to interest rates?

Our interest rate forecast keeps you up to date with the current interest rates and how they're likely to change – free of charge by email.

The fixed-rate period on a Libor mortgage is only short; once it's ended, the rate will immediately track the changed conditions on the financial markets. This is very welcome when interest rates are falling, but undesirable when they’re going up. You can protect yourself against rising interest rates by converting your Libor mortgage into a multi-year fixed-rate mortgage at the end of the fixed-rate period. The interest rate will then be fixed for the entire term.

Combining multiple mortgages with different terms minimizes the risk of having to renew your entire mortgage when interest rates change unfavorably.

Interest rate: dependent on the fixed-rate period selected (3 or 6 months)
Length: 3 years
Interest rate risk: interest rates will fluctuate during the entire term
Reference interest rate: based on the Swiss franc Libor* that applies to the selected fixed interest rate period

(3 oder 6 Monate)

What will happen if the Libor rate no longer exists?

The use of the Libor rate as the reference rate for Libor mortgages is expected to be discontinued at the end of 2021. The money market interest rate SARON (Swiss Average Rate Overnight) has been recommended as the new benchmark in Switzerland.

Wondering what will this mean for your UBS Libor mortgage, and what the alternatives are? Find out here.

Our advice – your benefits

  • Verification of the purchase price based on reference properties and location
  • Comprehensive information on the municipality, price level and tax rate
  • Development of the perfect financing strategy for you
  • On request: mortgage decisions within 24 hours

Our experts are here for you – we look forward to speaking with you.

Special offers

Special offers for your first mortgage or loan, renovation work on residential property and for energy-efficient, sustainable construction.