Category: Lenders

More competition on the mortgage loan market

This is good news for future homeowners. Because there is now much more competition on the mortgage loan market, the interest rates remain low for the time being. Show that the average mortgage loan interest rate for new mortgage loans is currently 2.8 percent and 4.16 percent for existing mortgage loans.

Banks get a smaller market share mortgage loan market

The Vereniging Eigen Huis is also pleased: ‘The extra margin that the banks achieved on mortgage loans has declined from 1 percent to 0.2 percent in the past year,’ says Hans de la Porte of the VEH. ‘Those high margins could reach the banks because there was hardly any competition. The three major banks hold 85 percent of the market. And foreign competitors have all left during the crisis. But now they are returning and the insurers and pension funds are also becoming more active. ‘

Banks are not happy with new developments within the mortgage loan market

Naturally, the banks are less happy with this. In particular, Rabobank is still considering whether they want to continue offering mortgage loans: ‘If this continues, we are considering completely stopping mortgage loans. Then we only mediate for the buyer and they have to take out the mortgage loan with an insurer or pension fund. We will then charge a fee for mediation, ‘says financial CEO Bert Bruggink of Rabobank. Other banks, such as the SNS, are slightly more nuanced about this: ‘That the margin goes down is just that. That is of all times, ” says Maurice Oostendorp, CEO at SNS Bank. ‘But mortgage loans are the cornerstone of our bank.’

New lending standards for mortgage loan set

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Do you want to buy a new house next year? Then you will have to take into account the stricter loan standards that start on 1 January 2018. The maximum mortgage loan will be equal to the property value. Other costs, such as advice and notary fees may no longer be co-financed. This also applies to homebuyers who apply for a mortgage loan in 2017, but only receive a definitive offer in 2018. The Netherlands Authority for the Financial Markets announces this. Not only the borrowing standard must be taken into account, so the key moment of the mortgage loan must also be monitored.

The income standard also changes

Not only do the loan standards change, the income standard also undergoes a change. The government is advised by Nibud on the amount of income that must be available to the maximum to meet mortgage loan payments. The law determines what percentage of the income may be spent on mortgage loan payments. The higher the fixed gross income, the more money can be borrowed.

mortgage loan offer must be tested before 2018

If you still want to come under strict lending standards, your mortgage loan must still be tested in 2017. The final mortgage loan offer must be on the doormat by no later than 15 November 2017, then there is still enough time to check whether this mortgage loan is financially feasible. Testing takes an average of 4 to 6 weeks, which means you are well on time before the new loan standards start.

mortgage loan providers can indicate in advance whether the duration of a mortgage loan application is sufficient enough to receive a binding offer in 2017. If this is not the case, then you must be informed of this in time by your mortgage loan provider. Good to know is that there is no transition period this year, as with the changes from 2016 – 2017.

 

Term life insurance cheaper after repayment mortgage loan

 

Have you paid (extra) on your mortgage loan? And then also adjusted your term life insurance? 99 percent of households who have paid extra for their mortgage loan is over-insured, according to research by the information platform. The survey was conducted among 516 households with a mortgage loan.

You are not legally obliged to take out a term life insurance policy when you take out a mortgage loan. However, many mortgage loan lenders do not grant a mortgage loan if you do not take out term life insurance. When you die, your income falls away. With the term life insurance, surviving relatives can still continue to pay the housing costs. This insurance is only paid if you die before a certain age.

Less debt

When you repay on your mortgage loan and all the more if you pay extra, the insured amount of your term life insurance can also decrease, unless you want to spend money on more than your living expenses alone. This ensures a lower premium. The research shows that the mortgage loan debts are reduced by means of repayments, but that the term life insurance policy is not adjusted accordingly. Adjusting the term life insurance policy can save several thousand euros over a thirty-year term. Check in advance whether this can be done with your bank and what costs it brings you.

Save too

When taking out a mortgage loan, you can also opt for a linear or annuity insurance policy. With a linear insurance policy, the insured amount decreases in equal steps. With an annuity insurance the insured amount decreases in ever larger steps. Although the insured amounts already fall with these insurances, it may also be worthwhile to adjust these term life insurance policies when you have repaid extra. Even though the savings are expected to be less.

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Switching can also pay off

The premiums for term life insurance policies have been halved since 2000. If you have taken out a term life insurance policy for this, you are now probably cheaper when you switch to another insurance company. Please note that you never cancel your old insurance policy before you have been accepted by the new insurer and request permission from the bank in advance.

 

Skip mortgage loan extra popular

Currently, it is top pressure on the mortgage loan market. This is not only due to the number of home sales, but also due to the transfer of existing mortgage loans.

Last January and February more mortgage loan applications were made; in February, the number of applications in the Netherlands was 22 percent higher than in February 2017.

Tight on the housing market

The number of mortgage loan applications is striking. Fewer houses are offered and houses that come onto the market become more expensive. In the last quarter of 2017 broker club NVM registered for the first time in years a decrease in the number of homes sold compared to the previous year.

The increasing number of mortgage loan applications is (also) a consequence of the rise in mortgage loan rates in the past two months (although they are still low, they are expected to rise slightly in 2018).

Two reasons for the crowds

Advisory organization De Hypotheekshop mentions two reasons that make mortgaging extremely popular. The first reason is to benefit from the low interest rates, as long as it is still possible. The second reason is that the penalty interest is less high. Anyone who adjusts mortgage loan interest early due to lower interest rates will be faced with penalties. Banks, after all, lose interest income.

The recent increase in mortgage loan rates can also be a reason, according to De Hypotheekshop. If interest rate increases ensure that the gap between the current market interest rate and the old mortgage loan interest rate of a home owner is reduced, the corresponding penalty interest rate is also lower.

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Too much penalty interest in early repayment mortgage loan

Do you plan to repay your mortgage loan before the term has expired? Please note that you can then claim compensation for a penalty interest or, as it is currently called. Research by the Netherlands Authority for the Financial Markets (AFM) even shows that various mortgage loan lenders still collect too much money from consumers who want to redeem early.

In March last year AFM published principles for the calculation of the financial disadvantage, which affects consumers who want to redeem early. From an AFM survey, to the calculation methods that lenders used at that time, it appeared at the time that there were major differences between providers.

compensation

As a home owner you can consider, due to the low interest rates, to redeem your mortgage loan early or to close it. Because your mortgage loan is calculated at the start on a certain duration and with a certain interest rate, it may be that you have to pay a compensation (formerly called that penalty interest) to your mortgage loan provider. Since 14 July 2016, this compensation may not exceed the financial loss that providers have as a result. Providers must also clearly indicate how the compensation has been calculated. These are consequences of the new European regulations.

More information about the early repayment of your mortgage loan? We are happy to help you find more information by bringing you into contact with an independent mortgage loan advisor in your area.

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Refund starting points

Because of these new rules AFM investigated the calculations of the fees. The basic principles that AFM formulated as a result of the investigation provide tools to be able to comply with the new rules. It also offers consumers a step-by-step plan and a checklist, so that they can see what they can pay attention to when they are faced with a payment with regard to the mortgage loan repaying or transferring early.

Regulation

Nine of the fifteen surveyed providers have charged too high a fee in at least one file, the AFM concluded. Because these new regulations came into effect on July 14, 2016, all consumers who had paid too much penalty interest had to get their overpaid money back. At the beginning of this year it came out that this (partly) happened. Providers must quickly correct their mistakes and demonstrate that they have changed their calculation method. Furthermore, they have to show that the information on the bill is improved.

The banks are willing to look at how the information can be improved with the AFM.

 

 

For the first time in five years less mortgage loans

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In the first quarter of 2018, banks and other financial service providers provided fewer mortgage loans than a year earlier. In the new report on the mortgage loan market, from consultant IG & H Consulting, the consultant writes that it is the first time in five years that there is a decrease in the number of closed mortgage loans.

80,000 mortgage loan agreements were signed in the first three months of this year. The same period last year, this number was 3 percent higher.

Difficulty for starters

The difference is due in part to a sharp decline in loans for starters. The number of credits for that group decreased by 11 percent. That, according to IG & H, shows that starters have a hard time in the housing market. Another difference is in the market share of starters. Four years ago this group formed the largest group of mortgage loan customers. Today they belong to less than a quarter of the market. ‘The position of starters seems to continue to deteriorate. Where in 2014 the number of starters was even higher than the number of people moving on, we now see that people moving through represent more than half of the market and starters a little less than a quarter, “says Joppe Smit, Senior Manager Banking at IG & H.

Higher yields

The number of mortgage loans is decreasing, but the revenues are increasing. The mortgage loan turnover has grown by more than 3 percent. That is mainly due to a higher mortgage loan sum. The average loan amount increased by 7 percent, compared to the first quarter of 2017, to more than 300,000 euros. That is the highest level ever. ‘The rise in the mortgage loan sum is thus the driving force behind the growing mortgage loan turnover in the first quarter’, says Smit. The total mortgage loan turnover in the first quarter of 2018 amounts to more than 24 billion euros.

Do you want independent mortgage loan advice from a consultant in your area? We are happy to help you!

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