Number of Dutch mortgages taken out decreases for the first time in 5 years
According to a new report on the market for Dutch mortgages by IG&H Consulting, fewer mortgages were taken out at banks and other financial services during the first quarter of this year compared to the same period in the previous year. This is the first time in five years that the number of mortgages taken out in the Netherlands has declined.
Sharp decrease in starter mortgages
During the first three months of 2018, 80.000 mortgages were taken out. This is three percent less than the first quarter in 2017. The group with the greatest decrease in the number of mortgage loans taken out compared to the previous year was starters. The number of loans for this group dropped by 11 percent.
The sharp decrease in the number of mortgages taken out by starters indicates that it has become more difficult for those starting out on the Dutch housing market to buy a house, according to IG&H Consulting.
Another indication of this difficulty is the reduced market presence of starters on the Dutch housing market. Four years ago, starters constituted the largest group of people taking out a mortgage. Nowadays, their market share accounts for less than a quarter, whilst those who already own a house in the Netherlands make up more than 50 percent of the market.
Increase in mortgage revenues
Despite the drop in the number of mortgages being taken out, revenues have increased, as mortgage sums have soared. On average, mortgage loans amounted to more than 300.000 euros, an increase of seven percent and the highest average sum they have ever been.