Stay flexible with a Libor Mortgage

A Libor Mortgage is a mortgage with a fixed term and a variable interest rate which that tracks the benchmark Libor rate (London Interbank Offered Rate). If you‘ are able to tolerate short-term interest rate fluctuations, you can benefit from attractive interest rates with athe UBS Libor Mortgage.

Advantages of a Libor Mortgage

  • Interest rates are lower than longer-term mortgage rates in a normal interest rate environment
  • The interest rate adapts quickly to reflect changes on the money markets (an advantage when interest rates are falling)
  • You can opt to switch to a UBS multi-year fixed-rate mortgage free of charge at the end of each fixed-rate period 

Libor Mortgages at a glance

Interest rate Adjusted every 3, 6 or 12 months (you can choose)
Term of the contract 3 years
Interest rate risk Interest rates may fluctuate during the term of the mortgage
Reference rate Based on the 3-, 6- or 12-month Libor

How the Libor Mortgage works 

A Libor Mortgage tracks the CHF Libor rate, which is the interest rate that prime banks offer each other on short-term deposits in Swiss francs The CHF Libor reflects the general interest rate level for short-term deposits in Swiss francs and is adjusted on a daily basis.

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