More people are applying for mortgages as interest rates continue to rise

Photo: Dutch News

Rising interest rates led to a sharp increase in mortgage applications in the first quarter of this year, but most of them are from people paying off things they already own.

In the first three months of the year, banks processed more than 191,000 mortgage applications, an increase of 37% compared to the same period in 2021, according to figures from HDN Mortgage Data Network.

Of the applications, nearly 72,000 were to buy a home, despite the shortage of suitable properties. The number of people remortgaging, either to invest in their home or to take advantage of lower rates, has increased by more than 75% year-over-year.

About 10% of the requests were made by people who wanted to pay for energy-saving measures in their homes, HDN said.

According to the mortgage comparison website Geld.nlinterest rates have increased by one percentage point since January.

That means a traditional mortgage with an NHG guarantee and a fixed interest period of 20 years will owe 2.53% interest, down from 1.44% in January, spokeswoman Amanda Bulthuis said.

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