Interest rates

Mortgage interest rates have doubled in recent months

Due to inflation driving up market interest rates, mortgage interest on several popular rates has risen sharply since October last year, Van Bruggen Adviesgroep said Monday. For example, the interest rate fixed for ten years with the National Mortgage Guarantee (NHG) has doubled, and the fixed rate for 20 years with NHG has risen from 1.33% to 2.36%, reports NU.nl.

Market interest rates are the interest rates charged in the capital market, for example, when banks lend money to other banks. Banks pass on the extra interest they have to pay on their own products, such as mortgages for home buyers.

Higher interest rates are particularly troublesome for first-time buyers because, in addition to higher costs, they also mean you can borrow less, Van Bruggen Adviesgroep said. Where people moving from one owner-occupied home to another can take advantage of the equity in their current home, first-time buyers don’t have that option. Although the consultancy added that the drop is only a few thousand euros compared to October.

First-time mortgage lenders also tend to get a higher interest rate than if they take out a second or third mortgage, Van Bruggen Adviesgroep said.