Money market rates have risen somewhat recently, and we expect they may increase a little further. This raises the likelihood that mortgage lenders will further increase their variable and short-term mortgage rates.
We expect capital market rates to remain around the same level this year. This increases the likelihood that mortgage rates with longer fixed-rate periods, after their recent rise, will remain around current levels for the time being.
"}},{"componentType":"accordion","accordionList":[{"title":"Further detail on interest rates with short fixed-rate periods","richBody":{"value":"Variable mortgage rates and mortgage rates with short fixed-rate periods often move in line with money market rates, such as Euribor. These rates are strongly influenced by the policy of the European Central Bank (ECB).
The ECB has kept its policy rate at 2% since June last year. As a result, money market rates remained broadly stable for a long time. Since the war in the Middle East, however, they have risen somewhat. Higher energy prices are pushing up inflation expectations, prompting investors to price in higher central bank rates.
We expect the ECB to raise its policy rate to 2.25% in June. As a result, money market rates could rise further, although uncertainty around this is high due to the war. Higher money market rates increase the likelihood that mortgage lenders will also raise their variable and short-term mortgage rates.
"}},{"title":"Further detail on interest rates with long fixed-rate periods","richBody":{"value":"Mortgage rates with long fixed-rate periods are mainly linked to European capital market rates. These have also risen since the war in the Middle East. Partly as a result, mortgage lenders have increased their long-term mortgage rates.
How the interest rate market develops will depend heavily on the war in the Middle East. If the war lasts longer and inflation rises, capital market rates could increase further. At the same time, a prolonged war could also cause more economic damage, putting downward pressure on capital market rates.
We expect capital market rates to be roughly at their current level at the end of this year, although uncertainty is also high here. Stable capital market rates increase the likelihood that long-term mortgage rates will also remain relatively stable until the end of the year.
"}}]},{"componentType":"sectionTitle","title":"What does a changed mortgage rate mean for me if I continue to live in my home?"},{"componentType":"paragraph","richBody":{"value":"In many cases, changes to the mortgage rate don’t immediately affect you if you continue to live in your home. This is because when you take your mortgage out, you fix your mortgage rate for a prolonged period of time (10 or 20 years for example).
If the fixed-rate period of your mortgage is about to expire, it may be sensible to follow interest rate developments and check whether your current mortgage type is still suitable for you.
We’re always ready to discuss this with you.
"}},{"componentType":"cta","textLink":{"url":"/en/personal/mortgage/your-mortgage/review-your-mortgage","text":"Review your Mortgage"}},{"componentType":"sectionTitle","title":"What does a changed mortgage rate mean for me if I move house?"},{"componentType":"paragraph","richBody":{"value":"A change to the mortgage rate when you take out a new mortgage means that your monthly payments will change. The mortgage rate also affects the maximum amount you can borrow on your mortgage to purchase your new home.
If you have an ING mortgage and are planning to move home, you may want to transfer your mortgage rate and make use of the mortgage portability option. Read more about the mortgage portability option here.
"}},{"componentType":"cta","textLink":{"url":"https://www.ing.nl/en/personal/mortgage/contact/cmnl-english?subscrid=cmnl-mort-engelstalig","text":"Discuss your mortgage rate"}}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","title":"Good to know","richBody":{"value":"The English text of the website is a translation of the Dutch original version. This translation is intended for the customers convenience only. In case of any discrepancies between the two versions, the original Dutch version shall prevail. The mortgage offer and contract will be signed in Dutch. Also, all further communication after signing the mortgage contract will be in Dutch. You acknowledge and accept this. If any assistance or clarification is needed, we recommend contacting your mortgage advisor or to call our customer service via the ING app.
"}}]}}}