According to the comparison service Comparis, interest rates have fallen further following the SNB's interest rate cut by 25 basis points to 0 percent. The expectation of further cuts in the course of the second half of the year is pushing interest rates down again.

Saron mortgages were in the range of 0.9 to 1.2 percent after the interest rate cut, the report continues. «Following the key interest rate cut by the SNB, the Saron is slightly in negative territory. Contractually, a value of 0 percent always applies to Saron mortgages in this case. The burden of Saron mortgages is now determined exclusively by the bank margin,» says Comparis financial expert Dirk Renkert.

(Graphik: Comparis)

Fixed-rate mortgages also became cheaper in the second quarter. 10-year fixed-rate mortgages cost an average of 1.4 to 1.9 percent, while 5-year mortgages were offered for 1.0 to 1.5 percent.

The benchmark rate, which is calculated using the reference interest rates of 30 financial institutions, fell to 1.77 percent for 10-year fixed-rate mortgages at the end of June from 1.92 percent at the end of March, and to 1.40 percent for 5-year mortgages from 1.63 percent.

According to Comparis, there were hardly any changes in the choice of mortgage type and terms, with around a fifth of customers opting for terms of three years of less. Around half of these were Saron mortgages. Medium terms (4 to 7 years) account for around a quarter and long-term fixed-rate mortgages with 10 years of more were still the most popular, accounting for just under half of all contracts, according to the report.