UBS Mortgage Review 2025 – Best Fixed & Variable Rates After SNB’s Interest Rate Cuts
- Aug 13
- 4 min read
If you’ve been following the Swiss mortgage market this year, you’ve probably noticed that 2025 has already been historic for one big reason: on 19 June 2025, the Swiss National Bank (SNB) cut its policy rate to 0% — returning to a zero-rate policy for the first time in years.
For me, as a homeowner and someone who closely watches mortgage trends, this instantly made me think about refinancing and how lenders like UBS are adjusting their rates. That’s where this article comes in: a complete, first-person, friendly, but detailed look at the UBS Hypothek 2025 — including the types of mortgages they offer, today’s rates, how they compare to other banks, and my own tips on how to get the lowest possible deal.
1. Overview of the Swiss Mortgage Market in 2025
The SNB’s decision to lower the policy rate from 0.25% to 0% was huge news. In plain English, this means borrowing costs for banks are lower, and in theory, that should trickle down to cheaper mortgages for us.
What I’ve already seen since the announcement:
Fixed-rate mortgages: Rates have dipped slightly compared to early 2025, especially for medium-term products (5–7 years).
SARON mortgages: These are variable loans tied to the Swiss Average Rate Overnight. The SNB cut immediately pulled the SARON rate slightly lower, making these the cheapest option right now.
Market mood: Buyers and refinancers are showing more interest. UBS and other banks have seen more inquiries since June.
But here’s the twist — the SNB has signaled that while rates are low, they’re not rushing back into negative interest territory. That means we’re probably looking at a “low but steady” environment for the rest of 2025 rather than endless cuts.
2. UBS Mortgage Types Explained
Fixed-rate mortgages
Your interest rate is locked in for the full term — usually 2 to 10 years with UBS, or up to 15 years via their key4 platform. Perfect if you like budgeting certainty.
Can be fixed up to 12 months in advance (18 months via key4).
Ideal if you think rates might rise again.
SARON mortgages
These track the compounded SARON rate (set in arrears) plus a bank margin. They’re generally cheaper than fixed mortgages but can move up if the market changes.
Flexible cancellation: often 13 months, but with “Flex” options it can be as short as 1 month.
You can switch to a fixed rate at any time.
Green mortgages
If your property has a recognized sustainability certificate (like Minergie or GEAK A/B), UBS gives you a 0.40% interest rate discount on fixed terms of 3–10 years.
In 2025, UBS has been marketing its Green Mortgage more aggressively — probably because it aligns with their sustainability goals and attracts a growing segment of eco-conscious buyers.
3. Current UBS Fixed & Variable Rates (as of 13 August 2025)
Indicative “from” rates on UBS key4 platform:
2–3 years: from 0.89%
5 years: from 0.97%
10 years: from 1.33%
15 years: from 1.58%
SARON margin: from 0.86% plus the current compounded SARON (recently around –0.04%), meaning an effective rate of ~0.82–0.90%.
Compared to the overall Swiss market, where SARON mortgages often sit between 0.9% and 1.2%, UBS is on the competitive side — especially when you factor in the Green Mortgage discount if you qualify.
Disclaimer: These are indicative “from” rates as of 13 August 2025. They are not an offer. Your actual rate will depend on factors such as your loan-to-value ratio, affordability, canton, property type, and when your mortgage starts.
4. UBS vs Credit Suisse & Raiffeisen – Who Wins in 2025?
Credit Suisse
After UBS’s takeover in 2023, Credit Suisse mortgages are now essentially UBS products in most new cases. Pricing is largely identical.
Raiffeisen
Known for strong local relationships but often slightly pricier, especially in the current low-rate environment. Their SARON products are fine, but their fixed terms don’t usually beat UBS unless you have a long-standing client discount.
Verdict
UBS wins in terms of product flexibility (easy to switch between SARON and fixed) and sustainability incentives. If you’re looking for a blend of competitive rates and digital + personal service, UBS is the safer bet in 2025.
5. UBS’s Approval Process & Customer Experience
I’ve been through the UBS approval process before, and here’s what I like:
Quick online estimates via the UBS Mortgage Calculator — plug in your property price, down payment, and preferred rate type to get an instant affordability check.
UBS Municipality Guide — great for comparing property taxes, population growth, and price trends in different areas.
Fast decisions — if you have your documents ready (proof of income, asset statements), approvals can happen within days.
Flexible switching — already on a SARON? You can jump to fixed at any time.
Their customer service is a mix of online tools and in-person meetings. I find the key4 platform especially handy for rate comparison and term adjustments without having to book a branch appointment
6. Tips for Getting the Lowest Rate in Switzerland
If you want the best deal in 2025, here’s what I’ve learned:
Increase your down payment — The lower your Loan-to-Value (LTV), the better your interest rate.
Use forward fixing — UBS lets you lock a rate up to 12 months in advance (18 months via key4). Perfect if you suspect rates will rise again.
Bundle your products — Having your investments or salary account with UBS can unlock small rate discounts.
Consider splitting — Many Swiss borrowers split into SARON + fixed tranches to balance stability and cost savings.
Negotiate — Even in Switzerland, rates aren’t always set in stone. If you’ve got a competing offer, show it to UBS.
7. Best Mortgage Type for First-Time Buyers
For first-time buyers in 2025, I often recommend a split approach:
Half in SARON — to take advantage of today’s low floating rates.
Half in a medium-term fixed (5–7 years) — for security if rates climb unexpectedly.
This way, you get the best of both worlds and can adjust later as your financial situation changes.
8. Conclusion
If you’re buying in Switzerland or refinancing this year, the UBS Hypothek 2025 offers some of the most competitive rates I’ve seen in years. With the SNB holding at 0% and property demand staying strong, now’s a great time to explore your options.
I always suggest running your numbers through the UBS mortgage calculator and speaking with an advisor. Even if you don’t end up with UBS, you’ll have a benchmark for what a competitive 2025 mortgage looks like.
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