At the moment that your fixed-rate period ends, you can choose a new interest period. At that moment you can also transfer to another bank without penalty. You must inform the bank 3 months before the end of the interest period. In those 3 months you can weigh both options against each other.
- Renew at your own bank
- Switch to another bank
- Rate lookup
- Property increased in value
- Pay attention to a savings mortgage
- Fix the mortgage interest: which period do you choose?
Renew at your own bank
If you choose a new fixed-rate period with your own bank, there are no costs involved. Note the period within which you must respond. If you are late, the bank will automatically extend the mortgage at the previous interest period.
Anyone who chooses to seek advice from a financial advisor pays consultancy costs.
Switch to another bank
If you decide to go to another bank, you will not pay any penalty interest for breaking open your old mortgage on the interest rate review date. However, there are significant additional costs such as consultancy, notary and valuation costs. First calculate whether you pay back by a lower mortgage interest rate with a new provider. An exception applies to mortgages with a removal penalty . Nowadays these are no longer offered, but if you have a mortgage from years ago, a moving fine may apply.
Rate lookup
The moment you choose a new interest period, it is also important to see if you can get a lower surcharge or a discount. With the exception of Delta Lloyd, this does not apply to mortgages with NHG : there are no interest rate surcharges for this.
On the interest rate review date, banks are obliged to base the new interest rate offer on the current residual debt: the interest rate must match the loan in relation to the value of the property. Most banks, however, do not look at the value of the home. If the value of your house has risen, the mortgage interest rate can probably fall. Check your storage with our step-by-step plan: check the risk surcharge on your mortgage .
Property increased in value
Also check the way in which you have to prove that the house has increased considerably in value. There are banks that always demand a valuation. The Consumers' Association does not agree with the Risk Storage Guideline .
WOZ value
If you think your home has become worth more and you can end up in a lower risk class, you have to prove this yourself. First check whether the WOZ value that the municipality assigns to your house is high enough. If this is the case, check whether your bank accepts this value, and if so, whether the bank equates that value with the current market value of the property.
If that is not the case, it is better to have a valuation carried out for a few hundred euros. Of course you only do that if you suspect that your house has risen sharply in price since the last revision of interest and you are currently still paying an interest rate surcharge.
Pay attention to a savings mortgage
If you have a savings mortgage , lower interest rates are not always favorable. You save in the savings policy at the same interest that you pay for your mortgage. With a lower mortgage interest rate, the savings premium will rise and as a result, the net mortgage costs (ie after tax refund) can rise. This will be the case in particular in the last (three-thirds) part of the total term. In the first (one-third) and second (two-third) part, a drop in the interest rate usually turns out to be advantageous.
Fix the mortgage interest: which period do you choose?
With the current low interest rates, many people will opt for a long fixed-rate period of at least 10 years. So you know for a long time what you are up to. The disadvantage of this is that the mortgage interest rate is higher for a longer period than for a shorter period. Only after interest rate review can you recoup this overpayment. You can not estimate whether that works in advance. Nobody knows what the interest will do in the long term. Choosing a longer fixed-rate period is buying security. You know that you can pay the current charges. That gives peace.
Move
When relocating, you have again the choice between the old contract interest or choose the day rate at that time. You take the old interest with you if the current interest rate is higher than the interest from your old mortgage contract. Given the low interest rate at the moment, that chance is high. Realize that you can only take the old interest with you if you stay with the same lender.
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