Stay flexible with a Libor Mortgage
A Libor Mortgage is a mortgage with a fixed term and a variable interest rate which 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 a 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
|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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