Average mortgage amount at record high in Netherlands
The average mortgage loan amount in the Netherlands reached an all time high at 287 thousand euros in the third quarter of this year, an increase of 2 percent compared to the second quarter, according to figures from IG&H Consulting & Interim. The increasing housing prices makes it more difficult for first time buyers to enter the housing market - the number of mortgage applications from this group decreased by 7 percent, despite an overall increase in the number of mortgages taken out, NU.nl reports.
"We see that the average mortgage sum for first time buyers rose to 232 thousand euros [plus 3 percent], while the number of mortgages issued to this group decreased by 7 percent. The difficult position for starters continues", Joppe Smit of G&H Consulting & Interim said, according to the newspaper. The average price for apartments - a popular form of housing for first time buyers - increased by 11 percent. "Where people moving through can now benefit greatly from the growing housing market, first time buyers seem to suffer from stricter borrowing standards and rising house prices."
In the third quarter a total of 87 thousand mortgages were taken out, an increase of 4 percent compared to the third quarter of 2016. In combination with the increasing housing prices, the total mortgage turnover amounted to 25.1 billion euros - an increase of 6 percent compared to the second quarter, and at the same level as in 2008.
People moving from one bought home to another accounted for 56 percent of the turnover on the mortgage market. First time buyers accounted for 24 percent, and people re-mortgaging their homes accounted for the other 20 percent.