Thursday, 14 May 2015 - 14:35
Mortgage rates start to rise
Major banks in the Netherlands are raising their mortgage rates for the first time after several years of contraction. Rabobank is raising rates for fixed-rate periods of five to eight years and 11 to 20 years by 0.1 percentage points. It's subsidiary, Obvion, is also increasing the rate for mortgages with a fixed interest period of ten to 15 years by 0.2 percentage points. ING is raising its ten-year fixed rate by 0.2 percentage points. This translates into 24 euros additional net cost every month on an average mortgage of 250,000 euro with a 42% interest deduction. Hypotrust was the first lender to raise their mortgage rights, a decision they announced last wek. Mortgage rates fell in recent years to historically low levels. This comes along with historically low interest rates in the Eurozone partly promoted by the monetary stance of the European Central Bank.