Will US interest rate increases impact SNB & Mortgage Libor rates?

Sorry for the noob question - but typically will we see Libor rates in CH increase?


SNB outlook seems stable at the moment looking at last news from them:

We will definitely see rates rise in CH, the question is when? :wink:
Most reports point at CH waiting for ECB to raise rates first, which has been predicted to be “probably not before 2019”.
Time will tell.

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Thanks for the comment. Might look to lock in a longer term fixed rate - something like 5-10yrs as I feel we are coming toward the end of these low rates. Would hate to see my Libor rate spike!

Libor for mortgage purposes has been floored at 0% for a long time now. If you took such a mortgage over a cheaper fixed term the joke’s on you

Not possible to my knowledge to get a cheaper fixed term than the the current 3mth Libor rate. 3mth Libor mortgage is about 0.8% with a bank, you’d never get 0%. A fix rate over 5-10yrs you are looking at roughly 1.25-1.8% depending on where you go. do you have a mortgage currently?

Mortgage loan rate consists of interest (the cost of lending the money) and margin (what the bank earns).

In a LIBOR loan, the interest is the LIBOR rate (currently -0.74%), and the margin could be something like 0.8%. However, nobody offers LIBOR loan with a total rate close to 0.1%, you will rather find 0.8%. LIBOR is “floored” at 0.0% + margin of 0.8%. I guess that’s what @hedgehog means.

Although what I don’t get is where can you find a fixed mortgage for lower than 0.8%.

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thanks for clarifying, was also my understanding.

Not saying you can get a fixed rate for 0.8%, but a 3mth Libor rate with bank is possible

2-3 year fix is cheaper than libor

And it gives you a better certainty too. Libor is essentially 3 month fix with some strings attached

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