Fixed-rate mortgage

A fixed-rate mortgage is good for you if you want to budget your interest rate costs precisely and avoid surprises. Why? Because both the interest rate and the term are fixed, allowing you to enjoy low interest rates for a period of years. You’re safe against rising interest rates for the fixed term of the mortgage. 

You want to be more flexible? In this case a SARON Mortgage will be the better choice for you.

Interest rate: Your mortgage is as unique as your property. That is why we are happy to calculate the interest rate offer based on your personal circumstances – free of charge.

Term: 2 to 10 years

Interest risk: only at maturity (when your mortgage expires, you may have to remortgage in a different interest rate environment)

Conclusion: the mortgage can either be paid out immediately or at a later date (up to twelve months in advance; longer advances on request)

Financing: for all types of real estate (houses, apartments, vacation properties or construction projects in Switzerland)

Repayments: can be contractually agreed

With our fixed-rate mortgage, both the term and the interest rate are fixed, meaning you can secure a favorable interest rate for a period of years. During the fixed term you are protected against rising market interest rates.

Select the term of your fixed-rate mortgage taking current interest rates into account. You’ll benefit most from a long-term loan when interest rates are low, and vice versa when rates are high.

You can fix the interest rate up to 12 months before the mortgage is paid out. This especially makes sense if you take out a new fixed-rate mortgage or switch your existing mortgage to us and believe that interest rates will rise.

The fixing of the interest rate and the payout of the mortgage therefore take place at different times.

Yes, to minimize this interest rate risk, it’s advisable to split large amounts between multiple mortgages right from the start. For example, you could agree two fixed-rate mortgages with different terms.

A mortgage without a fixed term (e.g., a variable mortgage) can be terminated and repaid at any time, subject to the period of notice (as a rule, this is three months).

Mortgages with a fixed term (e.g., fixed-rate or even Libor mortgages) can be repaid at the end of the contractual term.

In general: check the contractual provisions governing termination. In the event of extraordinary notice of termination, you or possibly even the bank may have to compensate the other party – depending on the current level of interest rates.

Repaying fixed mortgages with varying maturities

This can be done. However, since the mortgage notes, which serve the initial lender as collateral, are often not tied to individual mortgage tranches, they must be released to the new lender early on in exchange for a promise to pay.

Alternatively, the registered land charge can be divided up, though you as client will most likely have to bear some extra costs.