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.