A recent survey by the Nationale Hypotheek Garantie (NHG) reveals a growing number of homeowners in the Netherlands are worried about managing their housing expenses. The study highlights particular concern among those whose fixed-interest mortgage periods are nearing expiration, as they anticipate the impact of rising interest rates on their household budgets.

The NHG survey, which included approximately 2,400 participants with an NHG guarantee, indicates that nearly one in five homeowners are anxious about their financial stability. Furthermore, 35% of respondents reported that their income barely covers or is insufficient to cover all their housing-related costs.

A significant source of worry stems from the upward trend in mortgage interest rates. While homeowners benefited from historically low rates between 2015 and 2021, rates have been climbing since 2022. The average interest rate for a 10-year fixed mortgage, which stood at 0.9% in early 2022, has now risen to almost 4%.

The survey found that nearly 25% of homeowners are concerned about the effect of higher interest rates on their spending, while 13% admitted they hadn’t considered it. In contrast, 65% expressed no concerns.

Carla Muters, chairwoman of the NHG management board, emphasized the significance of these concerns, stating that there’s a clear need for mortgage providers and the NHG to enhance public awareness of available support.

On a positive note, the survey also revealed a decrease in average mortgage payment arrears, from eight months to 4.5 months. Approximately one in 20 homeowners have experienced payment backlogs at some point. Overall, only 3% of respondents reported substantial difficulty in paying their bills, while 81% indicated little to no difficulty.

The NHG serves as a national mortgage guarantee scheme, offering protection to homeowners against residual debt in the event of a forced sale due to circumstances such as unemployment, divorce, or disability.