Sharp increase in mortgages closed in 1st quarter
The number of mortgages closed in the first quarter of 2020 grew by 22.8 percent compared to the same quarter last year. The average mortgage value also increased, management consultancy firm IG&H said on Wednesday. According to the firm, "this indicates that the Dutch mortgage market has not yet faced the inevitable downturn caused by the Covid-19 pandemic."
The average mortgage value in the Netherlands was 337 thousand euros in the first quarter, an increase of 2.8 percent compared to the quarter before. Mortgage values increased in all groups of lenders, but most among existing homeowners transferring to a new home. In this group the average mortgage value increased by 5.4 percent.
Existing homeowners transferring to a new home still makes up the majority of mortgages, but people that refinance their mortgage or take out additional loans are catching up.
According to IG&H, the increase in mortgages may be a response the interest rate increasing due to the coronavirus crisis. Homeowners and prospective homeowners may want to take advantage of the low interest rates while they last.