Good news when it comes to payment arrears on mortgage loans.
The number of people with payment problems has declined sharply over a period of only 1 year. This year in April there were still a small 86 thousand people with payment problems. Of course, that is a lot of people. In April 2017, however, the number of people was no less than 12% higher. In April 2017 there were 98 thousand people with a payment arrears on the mortgage. So it is moving in the right direction.
Reason for the decrease in payment arrears
The reason given for the purchase of payment arrears may be an open door for you, but we would like to introduce it to you. By improving the labor market, there are also fewer and fewer people with income from employment. We see this borrowed from the ‘ordinary’ money . But of course also with the mortgages.
In addition, the lower interest rate may also have helped a little, the lower the interest rate, the lower the monthly burden in many cases because there are still many people who have to pay too high interest for the mortgage.
For a long time less payment arrears on mortgage
The mortgage barometer of the BKR shows that the decline in mortgage arrears started as early as 2015 and that is good news for everyone of course. A backlog on the mortgage is not only annoying for the banks, but also for the people with the arrears. It can be experienced as stressful if there are problematic arrears.
How to limit payment delays
First of all, it is important to ensure that when you take out a loan, you opt for a loan with a monthly payment that is affordable for you. Do not conclude any financing that you are in doubt. And of course, no financing will be taken out if you already know that your income is going to fall, and the new loan to be closed is already becoming difficult for you to meet.
In short, be honest with yourself and only enter into financing if the credit is also good to bear. This applies to a mortgage, but also to a regular credit.
Borrow money for additional costs when purchasing a home
If you are going to buy a house then there are additional costs. Costs for the notary, taking out a mortgage, and of course the transfer tax . All in all, these additional costs can increase significantly. In the past, borrowing money for additional costs when purchasing a home was hardly needed. Indeed, up to 125% of the foreclosure value of the home could be financed. The transfer tax, notary and mortgage costs could easily be co-financed. Now, however, up to 100% of the value of the home can be financed, you will have to invest your own savings or take out a loan. Then there is an important point to take into account.
What do you have to pay attention to?
The most important thing to pay attention to is that borrowing money for additional costs does not endanger your entire mortgage. If you take out a mortgage that is already the maximum for you, the mortgage lender will not accept it if additional financing is also taken out. Therefore, before you apply for a loan, always consult with the mortgage advisor if you want to take out a loan in addition to the mortgage. The adviser can clearly indicate what the possibilities are to take out a financing in addition to your mortgage. This is by far the most important step in applying for the loan. If you specify the spending target of the loan with your application, we will always ask for it so that we can give you the right advice.
In addition, it is of course important to ensure that you also reduce this loan. Just as with a car loan , it is important to align the term of the loan well with the spending target.
Risk of borrowing money for additional costs when purchasing a home
Borrowing money always involves risks. Borrowing money alongside a new mortgage is certainly no exception. Certainly if the mortgage you would like to wish for is no longer affordable due to the new loan to be taken out. The tip for this is that you continue to communicate clearly and well. Both with us and with your mortgage advisor. You can expect both to receive honest and independent advice for what is best for your situation.