GLKB sells Saron mortgages
Glarner Kantonalbank (GLKB) now sells rollover mortgages based on the Saron reference rate.
According to its own information, Glarner Kantonalbank (GLKB) is thus the first Swiss bank to offer the rollover mortgage based on the Saron reference rate as a standard product. In December 2019, UBS had announced that it had launched its first Saron real estate financings. Later this year, UBS plans to launch Saron mortgages, with other Saron products to follow from 2021, it said at the time.
Rollover mortgages have a total term of at least two years. New contracts and extensions would have to be converted from Libor to Saron before the end of 2021 and thus during the term. In order to save the additional expense, Saron-based mortgages will be offered for new contracts with immediate effect, GLKB said.
The base interest rate for the new rollover mortgage would be calculated at the end of the interest period of three months from the individual Saron daily rates. Thus, the interest rate can only be calculated at the end of the respective interest period. (ah)
