In short: Your loan‑to‑value ratio influences the level of your fixed mortgage interest rate. This means you may be able to reduce your interest rate by:
We understand that the term ‘loan‑to‑value ratio’ may sound rather technical. Below, we explain step by step what it means and, more importantly, what it means for you:
For example, from savings, an inheritance or a gift. This means you need a lower mortgage amount and may therefore benefit from a lower loan‑to‑value ratio.
"}},{"title":"Making repayments during the term of your mortgage","richBody":{"value":"When you make repayments, your mortgage balance decreases in relation to the market value of your property. This can be done by making an additional repayment. With certain mortgage types (such as an annuity mortgage), you automatically repay part of the loan every month. As a result, your monthly payments may already decrease slightly after around two years.
If your loan‑to‑value ratio has decreased due to repayments and your product‑specific interest rate table indicates that a lower rate applies, we will automatically adjust this for you as a service. If you have a (bank) savings mortgage, we will inform you if your loan‑to‑value ratio has changed and a lower rate would apply according to your product‑specific interest rate table, but we will not make this adjustment automatically (unless you have Bank Savings Mortgage – variant 1). We do not do this because a lower interest rate resulting from a change in the loan‑to‑value ratio may mean that your savings contribution or premium must be increased to reach the same target capital. As a result, your net monthly payments may rise.
"}},{"title":"Informing us that the value of your property has increased","richBody":{"value":"“Has the value of your property increased during the term of your mortgage? If so, this reduces the loan‑to‑value ratio. You must notify us of this yourself, as it does not happen automatically.
"}},{"title":"Example calculation: lower monthly payments through repayments","richBody":{"value":"Carla (35) has an annuity mortgage without NHG of €245,000. Carla pays the same gross monthly amount of €985, which means she has repaid €12,000 after two years. She asks us to adjust her mortgage interest rate because her mortgage balance has decreased. Carla now saves €23 gross per month on her mortgage payments.
"}}]},{"componentType":"sectionTitle","title":"We’re here to support you."},{"componentType":"paragraph","richBody":{"value":"Could you use some additional guidance? Or would you like to know more about your options when using savings or a gift alongside your mortgage? Schedule an appointment or use your mortgage adviser’s direct number.
There’s no need to worry, this phone call is part of our service. You won’t pay any advisory fees, and you are not committed to anything
"}}]},"complementaryZone":{"flexComponents":[{"componentType":"linkList","iconTitle":{"title":"More information"},"textLinks":[{"url":"/en/personal/mortgage/mortgage-calculator","text":"Calculate your maximum mortgage"},{"url":"/en/personal/mortgage/mortgage-advice","text":"Mortgage advice for expats"},{"url":"/en/personal/expats/mortgages/mortgage-step-by-step","text":"Mortgage step by step"},{"url":"/en/personal/mortgage/contact","text":"Plan orientation meeting"}]}]},"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.
"}}]}}}