Q: Conditions in detail

Interest rate: Variable, based on the Compounded SARON (Swiss Average Rate Overnight) and the contractually agreed SARON margin Accounting period: With a SARON mortgage, the interest is determined at the end of each quarter. Amortization: Direct or indirect We also offer the UBS SARON Flex Mortgage option. For an additional cost, you can take advantage of the following benefits: Short notice period of one month (on the client's side) Freely selectable reduction of the debt amount once per quarter

Question 1

How can I minimize my interest rate risk with a SARON mortgage?

Accepted Answer

The SARON mortgage follows the changes in the money market. This is great when interest rates fall, but you have to pay more when interest rates rise. You can protect yourself against rising interest rates by converting all or part of your SARON mortgage into a fixed-rate mortgage in just a few working days. With a fixed-rate mortgage, you fix the interest rate for the entire duration of the contract.

You can also combine a SARON mortgage with a fixed-rate mortgage. This means that only a portion of your interest costs fluctuate, while the rest always stays the same.

Question 2

Fixed-rate mortgage, variable-rate mortgage (SARON) or a combination of the two?

Accepted Answer

With a fixed-rate mortgage, you are protected against rising interest rates. But you don't benefit if interest rates fall either. The situation is different for a mortgage with a variable interest rate (SARON mortgage). With a SARON mortgage, you benefit when interest rates fall, but you also pay more when interest rates rise. It is therefore advisable to combine fixed-rate mortgages and SARON mortgages by dividing your mortgage into tranches.

Which mortgage combination is best for you depends on several factors. This includes your risk tolerance, what financial reserves you have, and what your long-term plans are, i.e., whether you want to sell the property, for example. It is best to talk to our mortgage experts so that we can look at your situation together.

Question 3

When is it worth converting a SARON mortgage into a fixed-rate mortgage?

Accepted Answer

One advantage of the SARON mortgage is that it can be converted into a fixed-rate mortgage at any time. This allows you to fix an interest rate, for example if you are worried interest rates will rise.

When interest rates on long-term, fixed-rate mortgages rise, it is often a sign that the market interest rate will also rise. That's why you should not only pay attention to how short-term interest rates develop but also keep an eye on long-term market interest rates. We recommend that you regularly review your strategy with your client advisor.

Question 4

What is SARON and how does it differ from LIBOR?

Accepted Answer

The LIBOR (London Interbank Offered Rate) reference rate was replaced by SARON at the end of 2021.

SARON (Swiss Average Rate Overnight) has existed since 2009 and is calculated on the basis of completed transactions and binding quotes (buy and sell prices) in the Swiss money market. It is calculated daily by SIX Swiss Exchange. The SARON is publicly visible, transparent and meets the requirements of international benchmark standards.

Question 5

Will I get individual advice?

Accepted Answer

Of course – and even free of charge. We’ll help you put together your mortgage right from the start. However, the choice of offer and provider is entirely up to you.

Question 6

How do I get a quote for a UBS-financed mortgage?

Accepted Answer

Arrange a non-binding consultation. Together, we can find the right mortgage to match your current situation in life and you will receive a non-binding interest rate offer.

Question 7

How do I get a quote from UBS key4 mortgages?

Accepted Answer

Answer a few questions online about the mortgage you want, your property and your financial situation.

With just one inquiry, you get the most attractive offers from our providers within seconds. Transparent and easy to compare. Interested in an offer? We’ll send you the offer by email and you can arrange an advisory consultation, if you wish. From here, our experienced advisors take over and explain step by step what happens next.

Question 8

What is UBS key4 mortgages?

Accepted Answer

In addition to our UBS mortgages, with UBS key4 mortgages we give you access to mortgages from selected third-party providers. Instead of spending a great deal of time obtaining offers, you can simply let the providers come to you. As your contact and contractual partner, we will look after and manage your mortgage for you.

Find out more

Question 9

Conditions in detail

Accepted Answer

Interest rate: Variable, based on the Compounded SARON (Swiss Average Rate Overnight) and the contractually agreed SARON margin

Accounting period: With a SARON mortgage, the interest is determined at the end of each quarter.

Amortization: Direct or indirect

We also offer the UBS SARON Flex Mortgage option. For an additional cost, you can take advantage of the following benefits:

Short notice period of one month (on the client's side)
Freely selectable reduction of the debt amount once per quarter

Question 10

SARON in brief

Accepted Answer

The interest calculation for a SARON mortgage is based on SARON (Swiss Average Rate Overnight). SARON is an interest rate used when financial institutions borrow money overnight. It is calculated daily by SIX Swiss Exchange. This means that the SARON mortgage follows the changes in the money market. Unlike a fixed-rate mortgage, the interest rates for a SARON mortgage are therefore variable.

However, so that you don't have to pay interest every day, interest is charged at regular intervals, usually at the end of each quarter. To calculate the exact amount of interest due, we look at how the SARON has developed over the past three months. SIX offers the Compounded SARON reference interest rate, which can never be less than zero. You contractually agree a margin with us that is added to the Compounded SARON. This results in your total interest costs.

Question 11

How can I minimize my interest rate risk with a SARON mortgage?

Accepted Answer

How can I minimize my interest rate risk with a SARON mortgage?

The SARON mortgage follows changes in the money market. This is great when interest rates are falling, but you have to pay more when interest rates are rising. You can shield yourself against rising interest rates by converting all or part of your SARON mortgage into a fixed-rate mortgage. With a fixed-rate mortgage, you fix the interest rate for the entire term of the contract.

You can also combine a SARON mortgage with a fixed-rate mortgage. This means only part of your interest costs will vary while the rest will remain constant.

Question 12

What’s the difference between a SARON mortgage and a fixed-rate mortgage?

Accepted Answer

A fixed-rate mortgage protects you against rising interest rates, but you don’t benefit if interest rates fall. The situation is different with a SARON mortgage, which allows you to benefit directly from interest rate cuts, although you have to accept interest rate fluctuations.

You can combine a SARON mortgage and a fixed-rate mortgage. This means you benefit slightly less from interest rate cuts, but also bear less risk if interest rates rise.

Which combination of mortgages is best for you depends on several factors. These include your risk appetite, what financial reserves you have and what your long-term plans are, in other words whether you want to sell the property. It’s best to talk to our mortgage experts so that we can look at your situation together.

Question 13

When does it make sense to convert a SARON mortgage into a fixed-rate mortgage?

Accepted Answer

One advantage of a SARON mortgage is that it can be converted into a fixed-rate mortgage at any time. This allows you to fix an interest rate, for example if you are concerned about interest rates rising.

An increase in interest rates for long-term fixed-rate mortgages is often a sign that market interest rates will also rise. You should therefore not only pay attention to developments in short-term interest rates, but also keep an eye on long-term market interest rates. We recommend that you review your strategy regularly with your client advisor.

Question 14

What is SARON and how does it differ from LIBOR?

Accepted Answer

The LIBOR (London Interbank Offered Rate) reference interest rate was replaced by SARON at the end of 2021.

SARON (Swiss Average Rate Overnight) has existed since 2009 and is calculated on the basis of completed transactions and binding quotes (purchase and sale prices) on the Swiss money market. It is calculated daily by the Swiss stock exchange SIX. SARON is publicly available, transparent and meets the requirements of international benchmark standards.

Question 15

How can I get an offer for a UBS-financed mortgage?

Accepted Answer

Arrange a non-binding appointment. Together, we can find the right mortgage to match your current circumstances, and you’ll get a non-binding interest rate offer.

Arrange a consultation

Question 16

How can I get an offer from UBS key4 mortgages?

Accepted Answer

Answer a few questions online about the mortgage you want, your property and your financial situation.

With just one inquiry, you get the most attractive offers from our providers within seconds. Transparent and easy to compare. Interested in an offer? We’ll send you the offer by email, and you can arrange an advisory consultation if you want. From here, our experienced advisors take over and explain step by step what happens next.

Get an offer

Question 17

What is UBS key4 mortgages?

Accepted Answer

In addition to our UBS mortgages, with UBS key4 mortgages we give you access to mortgages from selected third-party providers. Instead of spending a great deal of time obtaining offers, you can simply let the providers come to you. As your contact and contractual partner, we’ll look after and manage your mortgage for you.

Find out more

Rates	Rates	22.04.25	22.04.25	30.06.25	30.06.25	31.12.25	31.12.25	30.06.26	30.06.26
Rates	SARON	22.04.25	0.18	30.06.25	0.00	31.12.25	0.00	30.06.26	0.00
Rates	Swap 3 years	22.04.25	-0.03	30.06.25	0.04	31.12.25	0.05	30.06.26	0.06
Rates	Swap 5 years	22.04.25	0.15	30.06.25	0.22	31.12.25	0.22	30.06.26	0.23
Rates	Swap 10 years	22.04.25	0.48	30.06.25	0.55	31.12.25	0.56	30.06.26	0.57

SARON mortgage

Benefit from interest rate developments

Stay flexible

Switch to a fixed-rate mortgage at any time

Amortizing a SARON mortgage

Interest rate forecast in figures

Secure the best offer

When will the SARON go down?

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