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.
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Authors & data analysis of the IG&H Mortgage Update: