The most common form of interest rate for a mortgage loan is the variable interest rate. How can the percentage rate change throughout the whole loan period?

The percentage rate is the price of money in the market. As per the status quo in June, 2008, the interest rate for loans in francs is significantly smaller compared to the rate of loans given in zloty. However, one should always remember that the interest on indexed loans may undergo changes owing to the fluctuation of foreign percentage rates. A possible growth in foreign percentage rates sooner or later might affects domestic loans indexed to foreign currencies. Therefore, it is worthwhile to follow the current trends as well as studying the historical data on the interest rates graphed below.

Percentage and inflation rates in Poland between January 2002 and June 2008

Legend: Referential rate * WIBOR * CPI-measured inflation * Mean loan interest rate

Different percentage rates refer to loans in zloty and those indexed to a foreign currency (WIBOR to PLN, LIBOR to CHF, etc.). Banks most often apply WIBOR and LIBOR rates for periods of 3, 6 or 12 months.

WIBOR and LIBOR rates do not change at the same rate, not necessarily altering in the same direction (an increase of one does not bring about an automatic growth of the other). Accordingly, it is possible that the rates in Poland may go down whereas, for instance, they will go up in Switzerland. Thanks to which, installments of a loan in francs may be higher than those of a loan in zloty, or reversely, as a result of the opposite circumstances, installments of a loan in francs may decrease. Therefore, a borrower is advised to simultaneously watch the level of interest rates. The percentage rates in Poland can be viewed on the website: www.nbp.pl, in Switzerland, if a customer has taken up a loan in CHF, on the website: www.snb.ch, and in the euro zone, if a loan is expressed in euro, on the website: www.ecb.int. Prospective values of the percentage rate are forecast on the basis of the past values thereof, the latter does not necessarily reflect the trend over a long period of time. These figures may help a borrower make an informed decision about the loan offer, being no guarantee, though, as for the future market development.
The Bank informs its customers about the costs and risks in regards to the offer of loans in zloty and in foreign currencies, yet it takes no responsibility for decisions made by the borrower.