I’m currently in the process of signing a mortgage contract with UBS and ran into something that’s confusing me. The plan is to split it 50/50: • 50% SARON (supposedly with unlimited validity) • 50% fixed for 10 years When discussing the SARON part, my bank advisor told me it has unlimited validity. She specifically mentioned that I can terminate it with 13 months’ notice, which sounded straightforward. However, now that I’ve received the contract to sign, it states that the bank also has the right to terminate the SARON mortgage with 13 months’ notice without any reason or conditions. This was never mentioned to me before. I was under the impression that only I had that termination right, and that the SARON portion was effectively open-ended on the bank’s side. Is this standard practice with UBS SARON mortgages? Has anyone here signed a similar contract and noticed the same clause? I know that with some other banks SARON mortgages are limited to a certain term from the start, but I was told that’s not how UBS structures theirs. Would really appreciate hearing about others’ experiences before I sign anything. submitted by /u/SeriouslyNotable
Originally posted by u/SeriouslyNotable on r/Switzerland