Now that the mortgage interest rate is on average 2.5 percentage points higher than at the beginning of this year, a new need arises among home buyers: they want to include the lower interest rate of a previous house in a new mortgage. That is possible, although it is not always a smart choice.
Suppose a homeowner sells his house that still has a mortgage of 200,000 euros at an interest of 1.5 percent. The new house costs 500,000 euros and the interest has now risen to 4 percent. “Then it would be a shame to take out the entire new mortgage at the higher rate. You can take out two mortgages with two different terms. Then the 200,000 euros you need for the new house will continue to fall under the 1.5 percent interest rate. “, says Marga Lankreijer, mortgage expert at Independer. “The new mortgage part does fall under the current interest rate, in this example 3 tons for 4 percent.”
Get acquainted with the relocation scheme or take along scheme. Banks and other lenders try to retain their customers in this way. You can therefore only take the lower interest with the mortgage lender where you already have a mortgage. “It does not matter to the lender, because the money the customer used had already been purchased. There are two advantages for the customer: the monthly payments are lower and you can also borrow more money for the next house, because you have some financial savings. space left over,” says Lankreijer.
“Suddenly, this condition has come into vogue again,” notes Menno Luiten, commercial director of De Hypotheker. “It’s been a long time since this was attractive because in the past interest rates have usually gone down. Now there are homeowners who have lower interest rates on their current home than they can get on their next home.”
Take-away arrangement is not always attractive
Nevertheless, Luiten emphasizes that customers should not opt for it without good advice. “It may be that the new interest rate is not competitive on the market and that you would therefore be cheaper off with another lender. Certainly if the old interest part is relatively small, it may be better to opt for a lower interest rate with another provider. That is then automatically for the entire mortgage.”
Almost all banks and other mortgage lenders work with a take-away scheme, says Lankreijer. “Not in the past, but it is now the norm. There is a single bank that does not include the NHG rate on the new mortgage. But usually even that is possible: that your new mortgage is not covered by the National Mortgage Guarantee, “But the part of the old home is – even if the guarantee itself is cancelled. The risk class is always adjusted. The interest rate for the old mortgage part is then that matches the risk class that applied when the old mortgage was taken out.”
This has changed in mortgage land now that interest rates have risen so much
- Home buyers choose a shorter fixed-interest period: 10 or 15 years instead of 20 or 30 years as was customary in recent years.
- Fewer interest-only mortgages. These have been popular in recent years because the mortgage interest deduction had a smaller effect on the net monthly costs. Now that mortgage interest rates are rising, interest deductions are once again putting a firmer stamp on.
- Resolutive conditions are more often concluded. Home buyers are more cautious. Thanks to rising interest rates, you may no longer be able to pay for the house that has been bid on. Resolutive conditions prevent you from having to pay a fine of 10 percent of the purchase price.
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Menno Luiten believes that the usefulness of the relocation or transfer scheme shows that the lowest interest rate is not always a determining factor in the choice of a mortgage. “No one would have thought a few years ago that it would come in handy. The same applies to other conditions, such as paying off penalty-free. The moment you take out the mortgage, it is a far-from-your-bed show. But it is possible are that there is suddenly an inheritance or a large bonus and that you want to make extra repayments. With some providers you can repay a maximum of 10 percent extra per year, with others as much as 20 or even 100 percent. to look at.”
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