December 4, 2020

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Banks: less risk cases with interest-free mortgage money

Banks: less risk cases with interest-free mortgage money

Mortgage lenders launched a campaign in 2018 to alert customers to potential issues that could arise after the mortgage expired. A possible increase in monthly costs would then be unsustainable for some.

The percentage of customers with an interest rate mortgage who are at high risk of payment problems is 5.9% of the total, according to the Dutch Bankers Association. That was 8% two years ago.

The lenders have now checked almost 144,000 customers with an interest rate mortgage to see whether they can continue to bear their monthly payments in the future. Action was required in 31%. According to the NVB, 10,000 households of this group have taken measures so far.

Problems with interest free mortgages can occur at the end of the loan term. Customers then have to make repayments or take out a new mortgage. In this case, the monthly costs can increase significantly.

The Dutch Financial Markets Authority (AFM) estimated last year that around 2.7 million households had a full-rate or partial-rate mortgage. That totaled interest-free mortgage debt of € 310 billion.