More people interested in buying with friends amid Dutch housing crisis

The Dutch Consumers’ Association (Consumentenbond) has launched the friends mortgage (Vriendenhypotheek), which allows friends or family to buy a house together in the Netherlands. With rising housing prices and the Dutch housing shortage, the new mortgage option is seeing growing interest.

Consumentenbond launches friends mortgage in the Netherlands

In collaboration with independent mortgage advisor Frits and Triodos Bank, the Consumentenbond is now offering friends the option to buy a house together. “With this offer, the Consumentenbond aims to help consumers who are currently struggling in the housing market,” wrote the organisation in a news release.

The idea behind the “friends mortgage” is that with three or four friends or family members, it will be possible to get a higher mortgage than if you are a single buyer. Everyone involved would then become a co-owner of the house they share and be liable for the mortgage. 

With the average income only being able to afford 21 percent of Dutch homes, buying a house is becoming increasingly out of reach for many, especially single-income households and first-time buyers. “For first-time buyers on the housing market, it is incredibly difficult to buy a home. There is little supply and prices are high,” said Consumentenbond director Sandra Molenaar. “Buying a house together can be a solution.”

Clear agreements needed for Dutch mortgage with friends

With the continuing Dutch housing crisis, it is unsurprising that the new friends mortgage has gotten quite a bit of interest. However, Joyce Donat from Consumentenbond warns that it shouldn’t be taken lightly.

“It’s not easy either,” Donat told AD. “It is certainly not for everyone. It has to suit you, and you also need to make clear agreements with each other.” Anyone interested in the friends mortgage needs to carefully plan and make agreements about possible scenarios.

For example, what happens if one mortgage partner wants to move out and leave the agreement? Or if someone loses their job? The remaining partners will still be responsible for the mortgage and will need to cover the additional costs. The Consumentenbond helps people who want to take out a friends mortgage draw up a “Joint Home Ownership Agreement” to avoid any problems down the line. 

This is why many banks do not offer mortgages for more than two people, as there is also more risk. "It is possible at a handful of banks, but it really requires a tailored approach," explains Marga Lankreijer-Kos, Independer mortgage expert. “Another factor is that when friends buy a house, you know it will eventually come to an end. Whereas with partners, the intention is usually for the long term."