More homeowners worried about affording housing costs: Mortgage organization
More homeowners worry about affording their fixed housing costs, NOS reports from a survey by the National Mortgage Guarantee (NHG). Over a third of respondents said that their income is just enough or insufficient to pay all costs and fixed expenses, a slight increase compared to the previous survey in October.
The number of people in arrears on their mortgage is historically low, but according to the NHG, it takes a long time for money troubles to reflect in mortgage payments. Housing costs are often the last thing to fall into arrears.
Over 20 percent of respondents worry about their financial situation. According to the NHG, these concerns keep this group of people awake at night. They feel powerless and stressed.
“We also see that one in three people say: I can just about make ends meet. This involves multiple expenses, including housing cots, but also other expenses,” NHG chair Carla Muters said.
About 20 percent of homeowners said they use their holiday pay to cover necessary expenses like home maintenance.
The NHG raised concerns about homeowners who took out a fixed-interest mortgage between 2015 and 2021, when the mortgage interest rates were unprecedently low, even below one 1percent at one point. Those who took out 10-year fixed-rate mortgages will soon face adjustments, and mortgage interest rates have increased since early 2022, currently averaging at around 3.5 percent.
“Depending on the period, it will expire now or in the coming years, and then you will be confronted with a higher mortgage interest rate. It is difficult to say how much more you will pay,” Muters said. “It depends on your situation and what kind of mortgage you have. Then you have to compare the interest rate: what is it now, and what have you paid before? That is an individual sum, but it can cost tens of euros or much more net per month.”
