Housing prices have gone through the roof. This means the interest rate of your mortgage could go down. Let us explain how that works!

Five years ago, you paid on average €250,000 for a property. In 2021, you pay about €100,000 more! As a result, you could pay less interest on your mortgage, money you could spend enjoying the things that really matter to you.

The interest charged on your mortgage consists of a base rate and a surcharge fee. This is specifically the case for mortgages without National Mortgage Guarantee (NHG). You often pay a surcharge fee if your mortgage is 40% or 50% higher than the price you paid for your property.

Lower interest rate

The more you have borrowed for your property, the higher the surcharge fee. If you have financed your property for 100% (or more), your surcharge fee could go up to 0.6%. This means that on a €250,000 mortgage, you are charged an additional €1,500 interest per annum.

The less you have borrowed for your propery, the lower the surcharge fee. This percentage will change if your property goes up in value, if you have paid off part of your mortgage or if you have invested in, for example, solar panels. Your surcharge fee can go down, which will result in a reduction of your monthly charges.

What do you need to do?

• First of all, you need to find out if you pay a surcharge fee, how much this is and how much you could save. Your bank will be able to provide you with this information.
• Check the terms and conditions of your mortgage to find out if it is possible to adjust the surcharge fee during the duration of your mortgage.
• Now you need to find out how much your property is worth. The Valuation of Immovable Property Act (WOZ) is a directive but is never up to date. Especially now the housing prices are going up. Also, the condition of your property is not taken into account. Your neighbour’s ugly property has the same value as your little palace. A valuation report is usually a better choice.
• You then need to prove to the bank that you are entitled to a reduction of your monthly charges.

Vixx can obviously help you with this. We will also help you find the most suitable solution for you. There might be more possibilities than just reducing your surcharge fee.