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.


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%.


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