Rising interest makes a run for mortgage adviser | Money

This is evident from figures from Mortgage Data Network (HDN). About 85% of mortgage applications in the Netherlands go through this network.

Record

In the months of January, February and March, 191,293 mortgage applications were made via the network, the highest number ever in a quarter and more than 37% more than a year earlier. In the last quarter of 2021 there were 157,000, which was already a record then.

Of these applications, only slightly less than 72,000 were for the purchase of a home. That is slightly more than in the same period last year, but the number of applications for reclosures rose even faster. In some weeks of February, the number of applications was more than three times higher than normal.

Home value

The average value of a home in the applications was €486,500, no less than 15% or €64,500 more than a year earlier. This – high – value is the market value indicated by the applicant, after any renovation.

On average, a buyer brings in €44,000 of their own money.

This makes it almost impossible for starters to get in between. HDN divides starters into three categories: young, stable and high segment. For the ‘young starter’, who is on average 30 years old, more often has a lower or flexible income and buys a cheaper home with NHG, the chances are getting smaller.

HDN had only 6,746 such mortgage applications in the first quarter: about 20% less than a year earlier in the same period. Requests from buyers from the ‘upstream’ and ‘high-end starter’ categories actually increased.

Interest-only

It is also striking that the data shows that more and more buyers are opting for a partly interest-only mortgage. Half of the buyers applied for a mortgage with an interest-only portion. That was still 45% in the first quarter of 2021.

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