Mortgage loan rates have been in the news a lot lately because of the historically low position. mortgage loan interest rates have never been as low in the last ten years as in the last quarter of 2017. Unfortunately, this only applies to an annuity or linear mortgage loan. The interest rate for a interest-only mortgage loan is rising significantly.
What is a interest-only mortgage loan?
With this form of mortgage loan you do not have to repay during the term. You only pay interest on the mortgage loan sum. Because you do not pay off, this interest amount will remain the same if you have secured it over the entire term. You do not accrue capital with this form of mortgage loan because you do not pay off the mortgage loan. With the sale of the house or with savings you have to pay off this mortgage loan. This form of mortgage loan carries a great risk, especially if you fall into an older age category.
Rising mortgage loan interest
The interest-only mortgage loan is still loved by the Dutch despite the high risk. More than 1.1 million Dutch people use this form of mortgage loan. The new capital requirements for banks have recently become known. It establishes that banks must maintain larger buffers on the balance sheet with the aim of preventing a new financial crisis. The Netherlands is hit hard by these new requirements. The mortgage loan system has a relatively high mortgage loan debt compared to the rest of Europe. Because such a large part of the Dutch uses a interest-only mortgage loan, this will not be easy to catch up.
The new standard will not take effect until 2022, but the banks will already take action for this. Through an extra store for interest-only mortgage loans, they want to discourage mortgage loans from closing this form. Redeeming this mortgage loan due to the rising interest rate differential can become interesting.
Independent mortgage loan adviser in your area
Do you want to view the possibilities for your mortgage loan? Then contact our mortgage loan department. They will be happy to put you in touch with an independent mortgage loan advisor in your area.