Do you want to hedge against rising interest rates in advance?
With a “forward mortgage” from VP Bank, you can prolong ahead of time your expiring fixed-rate mortgages.
With a forward mortgage, the interest rate for a fixed-rate mortgage is determined in advance. The maximum lead-time is one year.
Characteristics
Minimum amount
CHF 100,000
Commission
None
Terms to maturity
2 to 10 Years
Commencement
Fixed start deadlines: 15.3., 15.6., 15.9. and 15.12. After maturity of the «old» fixed-rate mortgage and until the start of the new forward mortgage, the interest rate for variable mortgages is applicable
Maturity
Upon expiration of the interest rate agreement
Amortization
Possible in agreed amounts for the given fiscal period
Premature termination / (partial) repayment
Possible in exceptional cases with the approval of the Bank and upon payment of a fee for early termination
Account balancing
Semiannually, at the end of the semester
Advantages
Interest charges remain constant even if going rates increase
The opportunity to benefit over the long term from low current interest rates
Clearly plannable interest expense
No upward adjustment in response to rising interest rates
Combinable with other VP Bank mortgage products
Individualized combination of several fixed-rate mortgages with differing terms to maturity
Limitations
No possibility to benefit from declining interest rates
No possibility to terminate the loan prior to maturity
Maturity of the loan can occur in times of high interest rates, in which case it will be more expensive to refinance the mortgage
Interested?
Together, we will find the right financing model for your property
Why VP Bank?
We are a respected and renowned mortgage lender in the Liechtenstein/Switzerland region. We have achieved that reputation thanks to the combination of our flexibility and first-rate financing solutions.
