The UBS mortgage overdraft facility is a line of credit covered by a mortgage and will only be offered to clients who already have a mortgage with UBS. Depending on the market value of the property, UBS will extend a line of credit of between CHF25,000 and CHF200,000. This will give property owners the flexibility to use some of the equity they have invested.
As soon as the UBS mortgage overdraft facility is set up, clients decide how much to use without having to consult with their UBS advisor. This financial flexibility allows clients to use their equity for renovations, expansions or unplanned expenses. Interest is only charged on the amount of credit used. The interest rate for UBS mortgage overdraft facility, which is variable, is currently 3.5%, plus a quarterly 0.25% credit commission. The credit can be repaid at any time or replaced with a UBS mortgage.
