Libor mortgage at a glance
Fixed for the chosen fixed-rate term (3, 6 or 12 months)
Interest rate fluctuations over the full term
- Short-term interest rate fluctuations, but generally lower interest than for a fixed-rate mortgage
- The interest rate follows changes on the money market
- At the end of each fixed-rate term, it is possible to switch to a fixed-rate mortgage
When is a Libor mortgage the right choice?
The interest rate for a Libor mortgage is adjusted regularly. To make sure that you can still plan ahead securely, you can select the length of time that interest is set for. In other words, you can choose whether the interest rate should be adjusted every three, six, or twelve months. A Libor mortgage is a good choice if you expect interest rates to remain the same or to fall.
What will happen if Libor isn't there anymore?
The calculation of Libor, which is used 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 that will mean for your UBS Libor Mortgage, and what the alternatives are? Find out here.
Our advisory service – Your advantages
- Verification of the purchase price based on location and property details
- Comparison of the purchase price with reference properties in our database
- Comprehensive information on the municipality, price levels and tax rate
- Development of the perfect financing strategy for you
Our experts are there for you – we look forward to meeting you.
The interest rate on the Libor mortgage depends on fluctuations on the money market and is adjusted every three, six or twelve months. Falling interest rates are of course ideal, but you can protect yourself against rising interest rates by canceling your Libor mortgage and concluding a multi-year UBS Fixed-Rate Mortgage. With UBS, this is possible at the end of each fixed-rate term - meaning every three, six, or twelve months.