Mortgage revenue grows to new record of €38 billion, despite COVID-19 pandemic
Utrecht, August 6 2020 – Mortgage revenue during the second quarter of 2020 grows by 30% compared to the second quarter in 2019. The number of mortgages grows by 26% to 114 thousand. This is the highest number of mortgages since 2008. The numbers rose among all groups, but people taking out refinancing and additional loans showed the strongest growth. Their numbers rose by 64% compared to the second quarter in 2019. For the first time, the number of mortgages for people refinancing and taking out additional loans exceeds the number of mortgages for new homeowners and transferors.
“The COVID-19 pandemic is yet to negatively affected the Dutch mortgage market. We still see an increase in the number of mortgages for new homeowners and existing homeowners who transfer to a new home. The large increase in the number of mortgages for people refinancing and taking out additional loans shows that the pandemic even seems to have a temporary positive effect on the market” according to Joppe Smit of management consulting firm IG&H.
The average mortgage value continues to grow for new homeowners and transferors (+0,9%). For people taking out refinancing and additional loans, the average mortgage value decreases by 2,8% compared to the previous quarter. Collectively, this explains the decrease of the average mortgage value by 1,3% to €333.000.
People refinancing and taking out additional loans cause strongest growth in 5 years Mortgage revenue of people refinancing and taking out additional loans grows by 64% in the second quarter of 2020 compared to the same quarter in 2019. Their mortgage revenue of €15 billion encloses 40% of the total market revenue. The number of mortgages grows as well by 64%. This is the strongest growth in 5 years for both revenue and numbers. “It seems that many people take the time to refinance, possibly in anticipation of an increase in interest, or to take out additional loans for renovation during this pandemic. That clearly has a positive effect on the Dutch mortgage market” according to Smit.
Market share Top 3 banks drops to an historical low The market share of the top-3 banks has decreased to 45,6% this quarter. This decrease by -2,3 percentage points compared to the previous quarter brings their market share to the lowest level since the start of our measurements in 2006. Banks experience the strongest decrease of their market share among people refinancing and taking out additional loans
(-5,8 percentage points). ING experiences the strongest decrease for two consecutive quarters.
Over 4,950 advisors have passed the course for advisors in sustainable housing Since last quarter, IG&H reports on the progress of industry collective Duurzaam Wonen. They are getting closer to achieving their aim to educate at least 80% of all mortgage advisors in sustainability by the end of 2020. To date, 5,980 advisors have applied, an increase of 21% compared to last quarter. This implies that 60% of all mortgage advisors have now applied.
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Joppe Smit, Director bij IG&H E: joppe.smit@igh.com T: 06 2035 2438
Author & data-analysis IG&H mortgage update Annelies van Putten-Stemfoort