Whoever wants to take out a mortgage this year will get an extra month. The Cabinet nevertheless comes with a transition period for the current mortgage standards.
The transition period for mortgage
The transition period for mortgage standards seems definitive of the job. According to her, “the interpretation of the test moment Has Been known for some team and there is no reason to use the transition period this year.” The Minister is still taking a beating and will consult with the Netherlands Authority for the Financial Markets (AFM). She will inform the House of Representatives on 11 December. The possibility to quickly start a mortgage application is then over.
The transition period for the mortgage is not yet final. The majority is in favor of the motion, but the government can still decide to ignore this. For the time being, lenders are complying with the 31st December deadline for the binding mortgage offer.
Transitional month for mortgage standards
The Cabinet today adopted a move for a transition month for mortgage standards. The VVD MP Middendorp had called for this because homeowners may get stuck due to the Mortgage Credit Directive.
These new European mortgage rules stipulate that from now on the binding mortgage quotation determines which mortgage standards are used. Before the bank makes this final offer, all documents must first have been submitted and approved. This takes a while, so that the mortgage application must be started well before the deadline.
With the transition period, the mortgage application must be with the lender before 31 December. After that the customer still has time to deliver the documents. If there is a binding offer before January 31, 2018, this year’s mortgage standards apply. Customers have a month of respite.
Request a hypothecary soon
Anyone who has already submitted an application does not have to worry about everything coming true. Anyone who still wants to apply for a mortgage under current standards can still do so. This can be interesting because the mortgage standards will become slightly stricter in 2018. For example, no more than the property value can be borrowed.
Earlier, the government indicated that there would be no transition period for the old Good lender standards. An end-of-year rush for mortgages was then expected.