'A combination of consumer and mortgage credit is risky'

The Association of Mortgage Planners (NVHP) has noted an increase in the number of consumers using consumer credit to finance part of the home. According to the association, this is not entirely without risk and the Netherlands Authority for the Financial Markets (AFM) has since been informed.

NVHP: mortgage rules are bypassed with consumer credit
NVHP: mortgage rules are bypassed with consumer credit

More and more consumers are using consumer credit to finance part of the home. According to the NVHP, the trend has been identified more actively than before. With a WOZ credit , the standards that apply to mortgage credit are circumvented. This is due to the fact that consumers can borrow significantly less for the purchase of a house than a few years ago.

“This development is partly due to the introduction of the maximum of 106% of the value of the home and of course to the commercial acceptance policy of providers”, according to the NVHP. For example, the association wrote in its newsletter: "The signals received indicate that there are parties that actively offer the instrument of consumer credit, where the possibilities of mortgage credit hinder a consumer's desire to buy a particular home."

A dangerous trend because the improper use of the combination of consumer and mortgage credit to finance a home can have serious consequences for consumers and can again lead to reputation damage for the sector, says the NVHP. The AFM has now also been informed by the association of the working method.

When you take out a loan in addition to your mortgage, make sure that you will have to deal with higher costs in the coming years and choose a loan with a competitive interest rate . A loan and maximum mortgage is very risky.

Published April 2, 2012 at 10:36 am by the editorial staff .

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