Mortgage rates in the Netherlands rose sharply this week as geopolitical tensions involving Iran and Ukraine pushed up financial market interest rates, according to mortgage advisory chain De Hypotheekshop.
The company said almost all Dutch mortgage lenders increased their rates in recent days. Ten lenders raised their rates twice during the week.
Developments in the conflicts have increased energy prices and raised inflation expectations. As a result, market interest rates have moved higher, prompting banks to increase mortgage rates. Most of the rises were between 0.10 and 0.15 percentage points.
De Hypotheekshop said the average interest rate for a mortgage with a National Mortgage Guarantee (NHG), fixed for ten years, has recorded its largest increase since March. The rate now stands at 4%.
According to the advisory chain, further increases are likely. Several lenders have already announced additional rate rises for next week. This follows six consecutive weeks during which mortgage rates in the Netherlands had generally been falling.
The rate increases are also having an immediate impact on mortgage applications, De Hypotheekshop said. In particular, homebuyers appear to be submitting applications more quickly to avoid the risk of further increases.
Although the week is not yet over, the company said it has already received more mortgage applications than during any previous summer holiday week since it began keeping records in 2010.
@anp | NEWS BRAINPORT
