The Changing Dynamics of Saron Mortgages: From Cheapest Option to Waiting for Interest Rate Decrease

Two years ago, the arguments for a Saron mortgage were different: “Most customers argued that interest rates would not rise one way or another and they therefore simply wanted the cheapest model, i.e. a Saron mortgage. This despite one at the time already very flat yield curve.” From conversations with customers, Schubiger often hears that they want to wait and then switch to a longer model if interest rates fall.