House hunting more difficult: banks have stricter requirements for mortgages

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The corona crisis is causing an economic recession. That leads to bankruptcies and unemployment. Banks are therefore more cautious about lending. They want more guarantees that their customers can actually repay the loan.

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DNB bases itself on an international study, which is conducted every three months among banks in the Eurozone. In that Bank Lending Survey there is a turnaround. Where in recent years banks have become more flexible in providing mortgages, this has become a lot stricter in the past quarter.

This means that banks, for example, have stricter requirements for the level of your income and job security. Or they increase the interest on your loan. Banks also expect to become stricter in the coming quarter.

Coronacrisis

Mortgage lenders have been experiencing busy times in recent months. The number of mortgage applications rose sharply. That too had everything to do with the corona crisis.

Mortgage interest rates are rising, which is why many overspenders find it attractive to transfer their loan to another lender. As a result, they can still take advantage of the current low interest rates.

Decreasing demand

The banks expect this bustle to end. They think that the demand will decline soon.

Loan requirements for companies have also been tightened, according to the Bank Lending Survey.



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https://www.rtlnieuws.nl/economie/life/artikel/5171376/dnb-bank-lending-survey-hypotheken-strengere-eisen-banken-eurozone

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