If you have an investment-linked insurance policy, your money is invested in investment funds to build up capital. You use this capital to repay your mortgage debt in full or in part at the end of the term. Depending on how your investments are structured, you take on more risk or less risk. If the remaining term of your insurance policy is relatively short, it may be sensible to move to less risky investments. Since you have less time to make up for disappointing investment results.
You can also secure the value you have built up by surrendering the policy early and using the surrender value to repay your mortgage in full or in part before the end date. Any remaining mortgage debt would then need to be repaid using your own funds. If that is not possible, you can convert the remaining mortgage to another type, for example a mortgage with monthly repayments.
"}},{"title":"2. You can use the value you have already built up to repay part of your mortgage. This reduces your outstanding balance, which means you pay less interest.","richBody":{"value":"When you use the value you have built up to repay your Life mortgage in full or in part, your mortgage balance decreases, which means you pay less interest. Your interest rate may also be reduced if the loan to market value ratio becomes lower. You can find more information about the loan to market value ratio here.
"}},{"title":"3. You can avoid a potential remaining debt by changing to a mortgage with monthly repayments, which gives you the certainty that your balance will be fully repaid by the end of the term.","richBody":{"value":"If you want to avoid having any remaining mortgage debt at the end of the term, it may be sensible to convert your ING Life mortgage to a mortgage type with monthly repayments*. If the value built up in your life insurance policy is not enough to repay your mortgage in full, you will need to repay the remaining balance on the end date using, for example, your savings.
If that is not possible, it may be possible to extend your mortgage. This is only an option if you have sufficient (pension) income at that time. Whether an extension is possible also depends on ING’s policy at that moment. If an extension is not possible, you would need to sell the property, using the sale proceeds to repay the outstanding debt.
*You can also choose to keep your life insurance policy running until the end date and make periodic repayments on your mortgage alongside it. You can make an early repayment of up to 10% of the mortgage amount each year without any charges.
"}}]},{"componentType":"sectionTitle","title":"The disadvantages of converting a Life mortgage"},{"componentType":"accordion","accordionList":[{"title":"1. Early repayment charges may apply.","richBody":{"value":"If you repay your Life mortgage early, there may be costs involved. This depends, for example, on the amount you repay, the moment you make the repayment, and the level of the mortgage interest rate at that time. You can read more about the costs of making an early repayment on your mortgage here. These costs do not apply at the end date of the loan. It is therefore important to seek advice to find out whether it is worthwhile to repay your mortgage early and convert it in part.
Please note: ING is not aware of the value of your insurance policy. You need to request this value directly from your insurer. If you decide to surrender the pledged insurance policy early, you must submit this request to ING in writing. We will then instruct your insurer to surrender the policy. Once we have received the funds, you will receive a repayment statement from us. This process can sometimes take several weeks.
If the value of the insurance policy is not enough to repay your mortgage in full and a remaining balance is left after repayment, you will need to transfer the outstanding amount yourself. If this is not possible, we ask you to contact us so we can convert the remaining balance to another type of mortgage.
"}},{"title":"2. Your monthly expenses may increase when you switch to a mortgage that includes monthly repayments.","richBody":{"value":"For your Life mortgage, you pay a premium for the life insurance in addition to the interest. If you end your life insurance policy early and use the value to partially repay your mortgage, you can convert the remaining part of your mortgage to a mortgage type with monthly repayments. In that case, you pay monthly repayments on top of the interest. This means your total monthly costs may be higher.
The amount of your monthly repayment depends on the remaining term and the size of your loan. For more information about mortgage types where you make monthly repayments, such as an Annuity mortgage or a Linear mortgage, take a look at the relevant product pages.
"}},{"title":"3. If your life insurance policy is terminated, you may no longer be covered for the risk of death.","richBody":{"value":"If you want to end your life insurance policy early and this policy also includes death cover, it may be wise to apply for a separate term life insurance policy before cancelling the existing one. This way, you will know whether the new policy is accepted and the risk of death is covered.
"}}]},{"componentType":"sectionTitle","title":"Talk things through?"},{"componentType":"paragraph","richBody":{"value":"Want to discuss whether this mortgage type still suits your situation? Or would you like to know what your monthly payments would be if you switch? We are here to help.
"}},{"componentType":"cta","textLink":{"url":"https://www.ing.nl/particulier/hypotheek/contact/fh?subscrid=cmnl-mort-fh","text":"Get in touch"}}]},"legalZone":{"flexComponents":[{"componentType":"sectionTitle","title":"Good to know"},{"componentType":"paragraph","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.
"}}]}}}