Nationale-Nederlanden is continuously working on improving the mortgage conditions for NN mortgages. With the introduction of the new rate classes, NN automatically lowers the mortgage interest rate when customers qualify for a lower risk premium through redemptions. The number of rate classes will also be expanded and customers will be able to obtain a lower interest rate for a higher savings or home value.
Marcel Zuidam, CEO of Nationale-Nederlanden Bank: 'With this important adjustment in our mortgages, we offer customers the opportunity to reduce the monthly costs of their mortgages during the fixed-interest period. This makes Nationale-Nederlanden the first larger mortgage lender to allow all its customers to automatically reduce their mortgage interest rates by redemption during the fixed-interest period.’
Automatic interest rate cut
An important change is the extension from three to nine different tariff classes. Each month, NN checks whether a mortgage can be moved into a tariff category with a lower risk premium as a result of a partial redemption. When a mortgage qualifies for this, NN automatically and immediately lowers the mortgage interest rate. Even during the fixed-interest period of the mortgage. This applies both to customers who currently already have a Nationale-Nederlanden mortgage and to new customers. Customers do not have to take any action themselves and will receive a message if their interest rate goes down.
Nationale-Nederlanden does not automatically adjust the risk premium for customers with (bank) savings mortgages. Redemptions or a higher savings value can also result in these customers receiving a lower risk premium, but it is not always advantageous for them if the mortgage interest rate falls. They can best seek advice from their advisor in this regard.
In addition, during the fixed-interest period, customers can also receive a lower risk premium if the value of their home has increased. The customer can demonstrate the increase in value by means of an appraisal report or the current WOZ value.
The new tariff categories will also apply to current customers with an NN mortgage. In the coming days, Nationale-Nederlanden will be informing all customers about the new tariff classes and what this means for them personally.
Compensation as from January 2019
As previously announced, NN will compensate customers retroactively for the period from 1 January 2019 until the introduction of the new tariff classes on 27 July 2019. This applies to all NN mortgage customers who, as a result of redemptions, would have automatically qualified for a lower risk premium than their current risk premium. The current risk premium is compared with the risk premium of the new tariff categories.
Delta Lloyd Mortgages
For Delta Lloyd customers, too, the risk premium will automatically be adjusted during the fixed-interest period as a result of a decrease in the mortgage amount or at the customer's request as a result of a higher savings or house value. This will happen as soon as the Delta Lloyd mortgages have been migrated to Nationale-Nederlanden's systems. We will announce the rate classes and risk premiums that will apply to Delta Lloyd mortgage customers in due course.
Nationale-Nederlanden Bank N.V. (NN Bank) offers retail banking services - savings, bank annuities, retail investments, mortgages and consumer loans - to approximately one million customers, primarily in the Netherlands. NN Bank operates under the brands NN, Nationale-Nederlanden, Delta Lloyd Bank and OHRA Bank. NN Bank is a subsidiary of NN Group, an international financial services company, active in 18 countries, with a strong presence in a number of European countries and Japan. NN Group is listed on Euronext Amsterdam (NN).
Elements of this press release contain or may contain information about NN Bank within the meaning of Article 7(1) to (4) of EU Regulation No 596/ 2014 (Market Abuse Regulation)’Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation:(1) changes in general economic conditions, in particular economic conditions in NN Bank’s core markets, (2) changes in performance of financial markets, including developing markets, (3) consequences of a potential (partial) break-up of the euro or European Union countries leaving the European Union , (4)changes in the availability of, and costs associated with, sources of liquidity as well as conditions in the credit and capital markets generally, (5) changes affecting interest rate levels, (6) changes affecting currency exchange rates,(7) changes in investor and customer behaviour, (8) changes in general competitive factors, (9) changes in laws and regulations and the interpretation and application thereof, (10) changes in the policies and actions of governments and/or regulatory authorities, (11) conclusions with regard to accounting assumptions and methodologies, (12) changes in ownership that could affect the future availability to NN Bank of net operating loss, net capital and built-in loss carry forwards,(13) changes in credit and financial strength ratings, (14) NN Bank’s ability to achieve its strategy, including projected operational synergies, 15) operational risks, such as system disruptions or failures, breaches of security, cyber-attacks, human error, or inadequate controls including in respect of third parties with which we do business, (16) the inability to retain key personnel, (17)catastrophes and terrorist-related events, (18) adverse developments in legal and other proceedings and (19) the other risks and uncertainties contained in recent public disclosures made by NN Bank.
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