Why take an interest rate collar?
With an interest rate collar on your loan, you no longer have to worry about interest rates rising, as you will have secured your loan against large fluctuations in its reference rate. It is actually worth locking in an interest rate collar at the current favourable interest rate levels while they are still low. This will allow you to continue to enjoy the current low rates in the future, securing the monthly payment on your loan for years to come!
Interest rate collar is available for Nordea's Private Banking and Business Banking customers.