Homeowners face higher monthly payments as fixed-rate mortgages expire

Homeowners Face Higher Monthly Payments as Fixed-Rate Mortgages Expire

Homeowners who took out mortgages during the past decade will experience increased monthly payments as their fixed-rate periods end, a result of recent interest rate hikes. However, according to De Hypotheker, the impact is less severe than expected due to the rise in mortgage tax deductions.

Interest Rate Trends and Mortgage Details

Between 2016 and 2021, interest rates were historically low. Since then, the average ten-year mortgage rate without the National Mortgage Guarantee (NHG) has risen sharply, from 1.05% to 4.07%, an increase of over 3 percentage points.

During this low-rate period, about 16% of mortgages had fixed rates of up to ten years, De Hypotheker reports.

Effects on Borrowers with Interest-Only Mortgages

De Hypotheker analyzed various scenarios and found that homeowners with partly interest-only mortgages bear the greatest burden. For instance, a couple who took out a 450,000-euro mortgage at 2.4% in 2016 for ten years—including 200,000 euros as interest-only—would now pay an extra 206 euros monthly at the current average rate of 4.05%.

Thanks to increased mortgage interest tax deductions, the payment increase is limited. Without these deductions, their monthly payments would rise by 430 euros.

"The impact of the higher interest rates on households seems generally manageable," said Mark de Rijke, commercial director of De Hypotheker.

Author's summary: Rising fixed mortgage rates increase monthly payments but are partially offset by higher tax deductions, softening the financial impact for many homeowners.

NL Times — 2025-11-01