ING’s bank savings mortgage is a combination of an interest-only loan and a savings account. At the end of the mortgage term, you pay off the mortgage in full using the savings from the linked savings account.
"}},{"componentType":"sectionTitle","title":"Here’s how a bank savings mortgage works"},{"componentType":"paragraph","richBody":{"value":"With a bank savings mortgage, you are effectively saving and borrowing at the same time. Every month, you pay the mortgage interest on your loan and put money into the savings account that is linked to your mortgage. With this type of mortgage, you pay interest on your mortgage at the same rate as you earn interest on your savings. The savings account for your mortgage is blocked and pledged to the bank, meaning that you cannot access the savings in this account during the mortgage term.
"}},{"componentType":"sectionTitle","title":"Bank savings mortgage conditions tightened"},{"componentType":"paragraph","richBody":{"value":"You can now only take out a bank savings mortgage if you already have a mortgage that is linked to some kind of capital accumulation product that qualifies for deduction from your taxable income on your tax return. If, for example, you currently have a mortgage with an endowment mortgage policy or home savings account linked to it, you may be able to switch to an ING bank savings mortgage without having to pay additional tax. This is, however, subject to conditions. This process is called 'tax-neutral transfer'. If you want to refinance a mortgage to ING, our adviser or your independent adviser will be happy to tell you more about this option.
"}},{"componentType":"sectionTitle","title":"Advice for your personal situation"},{"componentType":"paragraph","richBody":{"value":"Our mortgage advisers can answer all your questions and give you advice about which mortgage would be right for you.
With a bank savings mortgage, you will pay:
Mortgage advice is subject to advisory fees, which are charged at a fixed rate. You can always choose to have a no-obligation exploratory consultation with an ING mortgage adviser. Additionally, make sure you bear in mind the notary fees, appraisal costs and possible other charges.
Consisting of interest and a deposit into the linked savings account, the monthly payments for an offset mortgage will not change during your fixed-rate period. When the fixed-rate period ends, we will recalculate your monthly payments based on your new interest rate.
"}},{"componentType":"sectionTitle","title":"Advice for your personal situation"},{"componentType":"paragraph","richBody":{"value":"If you’d like personal advice, an ING mortgage adviser will be happy to answer all your questions and give you advice about which mortgage would be right for you. The number to call is +31 (0)20 22 888 22 (local call charges apply). We would be happy to help you on weekdays from 8am to 9pm and on Saturdays from 9am to 5pm.
When you decide to take out a bank savings mortgage, it’s important to know exactly what to expect. This is where the terms and conditions below come in, as they explain things such as when exactly your mortgage payments will be debited. If you have any further questions about our bank savings mortgage, please feel free to get in touch with us. We’ll be happy to help.
A bank savings mortgage with ING is made up of two parts: an interest-only loan and a savings account. Every month, you pay the mortgage interest on your loan and put money into the savings account that is linked to your mortgage. The savings account with your mortgage is blocked and pledged to the bank, meaning that you will not be able to access the savings during the mortgage term. At the end of the term, you will use the savings in the linked savings account to pay off your bank savings mortgage.
"}},{"title":"What is a mortgage-linked savings account?","richBody":{"value":"This is a blocked savings account that is linked to the bank savings mortgage. It is the account used to build up savings that will ultimately be used to repay the mortgage at the end of the term.
"}},{"title":"I have a bank savings mortgage with another bank and want to refinance to a bank savings mortgage with ING. Is that possible?","richBody":{"value":"Yes, it is, provided that you meet certain conditions. If you meet the conditions, you will be able to transfer the capital accumulated under your endowment mortgage policy or in a home savings account to a bank savings mortgage with ING without having to pay tax on these funds. If you’d like advice on refinancing from your current mortgage to an ING bank savings mortgage, contact your intermediary or call us on +31 (0)20 22 888 22 (local call charges apply). We would be happy to help you on weekdays from 8am to 9pm and on Saturdays from 9am to 5pm.
"}},{"title":"I have a savings account for my mortgage (home savings account). Is it covered by the deposit guarantee scheme?","richBody":{"value":"As of 1 January 2014, the capital in a home savings account is offset against the mortgage debt on the home. A common type is the savings-based mortgage. Interest is paid on the mortgage loan and no repayments are made. Alongside that, you pay a monthly cash value contribution, which is calculated to ensure that the sum of the funds contributed and interest earned on those funds will be enough to pay off the mortgage at the end of the term. These funds are held in a bank savings deposit account for owner-occupied homes.
Under the deposit guarantee scheme, the balance in the bank savings deposit account is deducted from the mortgage debt. In most cases, the balance in this bank savings deposit account will not fully cover the mortgage debt, meaning that the balance in the bank savings deposit account will be zero after the funds in the account have been offset against the mortgage debt. Only if the savings balance is greater than the mortgage debt will the deposit guarantee scheme compensate the account holder for the remaining balance. This compensation is capped at €100,000.
If the bank savings deposit account is held for the purchase or sale of a property, an additional guarantee of up to €500,000 is provided for a period of three months after the money was put into the deposit account. This amount comes on top of the regular cover of €100,000 per account holder per bank. For more information, see ing.nl/dgs.
"}},{"title":"In what kind of situation might my monthly outgoings after tax relief on mortgage interest go up?","richBody":{"value":"It may sound odd, switching to a lower interest rate for your new fixed-rate period and seeing your mortgage outgoings after tax relief on mortgage interest go up. Still, this is something that can happen. This is because a lower interest rate means that you will be paying more into the savings account(s) linked to your bank savings mortgage. The interest you pay on your mortgage is often tax deductible, but the payments into your savings account are not. As a result, a lower interest rate may push up your monthly payments into the savings account to such an extent that your mortgage outgoings after tax relief on mortgage interest will go up. Seeing as these net mortgage outgoings are related to the extent to which you’re able to deduct mortgage interest from your taxable income, we’re unable to advise you on which fixed-rate period would give you the lowest mortgage outgoings after tax relief on mortgage interest. In the above situation, you may even be better off refinancing to another type of mortgage. Make sure you discuss it with your ING mortgage adviser or a intermediary first.
"}}]}]},"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.
"}}]}}}