This is a tailored package which allows you to keep a fixed rate for 3, 5 or 10 years. At the end of each period, it is you who decides whether to continue with a fixed or variable rate until the end of the next period, and so on. Let’s take the example of a 20-year contract with a review period of five years. At the end of the first five-year period, you kept a fixed rate for the second period. For the third period, you chose to change to a variable rate. For the fourth period, you go back to a fixed rate.
The protection offered to you by a fixed rate during the first period(s) of your contract is substantial. The interest due is actually higher at the start of the contract than at the end. This example is only a hypothetical situation, aimed at demonstrating the potential impact of a rate increase on a housing loan, and in no way binds ING as regards the rate to be applied by ING in the case of an effective increase in rates.