Mortgage market shows modest recovery with growth in mortgage sales and number of mortgages closed
Utrecht, November 16, 2023
Several data sources point to a modest recovery of the mortgage market. Mortgage sales are rising to €26.9 billion in the third quarter of 2023. This is the second quarter in a row that mortgage sales are up from the previous quarter, after a period of sharp decline. This shows that the increase follows the usual seasonal pattern of previous years. The number of mortgages issued also increased to a total of 80,000.
Highest market share for first-time buyers since 2016
Mortgage sales rose in the third quarter of 2023 for all lender groups compared to the second quarter of 2023. Mortgage sales among first-time buyers showed the largest increase, as in the previous quarter, at 8.4%, followed by existing homeowners at 8.3% and refinancers at 3.3%.
The market share for both first-time buyers and existing homeowners increased slightly compared to the previous quarter, resulting in the highest market share for first-time buyers since 2016. By contrast, refinancers saw a 4.2% decline in sales, bringing their market share to its lowest point since the IG&H Mortgage Update began in 2014. "The opportunities of first-time buyers in the housing market are improving, this is reflected in the increased market share," explains Simone Mensink, Director Banking at IG&H.
Average mortgage loan size rises to the highest level
The average mortgage loan size (excluding bridging loans) reached a record level of €396,000 in the third quarter of 2023. This is an increase of 4.1% compared to the second quarter. This increase is noticeable for all lender groupsand marks a break in the trend for existing homeowners and refinancers. A downward trend was evident in the average mortgage size until the second quarter of 2023. Refinancers saw the largest increase, followed by existing homeowners and first-time buyers.
Providers: Banks regain ground on market share, especially by ABN AMRO labels
In Q3 2023, banks strengthened their position as market leaders, with a 1.6% increase in market share. Particularly notable is the rise of ABN AMRO labels, making the group the new number 2 in the top 10 providers. At the same time, insurers experienced the biggest drop in their market share with a 1.5% decline. Meanwhile, specially set up mortgage companies (Dutch regiepartijen), with Munt as the most impressive riser, and foreign parties, with Lloyds Bank being the strongest decliner, see a slight increase and decrease in their market share, respectively.
Number of fuel-efficient energy labels continues to grow
The number of registered energy labels for Dutch homes increased by 3.8% to 125,500 registrations in Q3 2023, with 90.6% for existing homes and 9.4% for newly built homes. Although the number of registrations for energy label A increased to 53,600, its relative share decreased to 42.7%. Labels A through E now represent 92.8% of the total, in line with expected legislation banning energy labels F and G by 2033.
Would you like to know more? You can download the full mortgage update below. We wish you pleasant reading and wholeheartedly invite you to respond!
Kind regards,
Simone Mensink
Director Banking
T: +31 6 80 16 95 48
Authors & data analysis of the IG&H Mortgage Update:
Veerle Willemsen
Steven Moerkens