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Longer fixed-interest mortgages more popular in the Netherlands

Staff writer |
Dutch households increasingly opt for longer fixed-interest periods when taking out a new residential mortgage loan with Dutch banks, possibly also due to the low interest rates.

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In March 2016, the majority of Dutch households (52%) opted for a fixed-interest period of between five and ten years.

Another 20.5% preferred a fixed-interest period of more than ten years. The remaining new mortgages contracted had fixed-rate periods of up to one year (15%) or between one and five years (12.5%).

The preferred fixed-interest period has increased over the past years The percentage of Dutch households opting for a fixed-interest period of ten years or more was significantly higher in 2015 (16%) than in 2014 (6%).

The number of newly contracted mortgage loans with a fixed-interest period of five to ten years also increased, from 39% to 52%.

The preference for longer fixed-interest periods for new residential mortgages has been higher with households in the euro area than with Dutch households for some time now.

Almost half (47%) of the households in the euro area opted for a fixed-interest period of ten years or more. Another 22% chose a fixed-interest period between five and ten years. A fixed-interest period between one and five years was opted for by 10%, and 21% preferred a fixed-interest period of up to one year.


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