For the first time in five years less mortgages loan

In the first quarter of 2018, banks and other financial service providers provided fewer mortgages than a year earlier. In the new report on the mortgage market, from consultant IG & H Consulting, the consultant writes that it is the first time in five years that there is a decrease in the number of closed mortgages.

80,000 mortgage agreements were signed in the first three months of this year. The same period last year, this number was 3 percent higher.

Difficulty for starters

The difference is due in part to a sharp decline in loans for starters. The number of loans for that group decreased by 11 percent. That, according to IG & H, shows that starters have a hard time in the housing market. Another difference is in the market share of starters. Four years ago this group formed the largest group of mortgage customers. Today they belong to less than a quarter of the market. ‘The position of starters seems to continue to deteriorate. Where in 2014 the number of starters was even higher than the number of people moving on, we now see that people moving through represent more than half of the market and starters a little less than a quarter, “says Joppe Smit, Senior Manager Banking at IG & H.

Higher yields

The number of mortgages is decreasing, but the revenues are increasing. The mortgage turnover has grown by more than 3 percent. That is mainly due to a higher mortgage sum. The average loan amount increased by 7 percent, compared to the first quarter of 2017, to more than 300,000 euros. That is the highest level ever. ‘The rise in the mortgage sum is thus the driving force behind the growing mortgage turnover in the first quarter’, says Smit. The total mortgage turnover in the first quarter of 2018 amounts to more than 24 billion euros.

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