Sharing Economy News: ABN Amro allows homebuyers old co-finance outstanding debt

Friday, February 27, 2015

ABN Amro allows homebuyers old co-finance outstanding debt – Telegraaf.nl

AMSTERDAM –

ABN Amro gives the recovering housing an additional move in the back. Customers of other banks aanhikken against a residual debt if they sell their home, they can blame from today at ABN Amro obtain financing for a new mortgage at a competitive interest rate

“Our own mortgage customers have this capability already By this now for other homeowners as possible, we hope to boost the flow on the housing market.” says Jan Baars, director of mortgages at ABN Amro. He estimates that tens of thousands of consumers want to make use of the offer.

Many people currently have plans to move because attracts the housing, their housing needs have changed and interest rates are historically low. But for one million homeowners threatened a residual debt if they move. Their mortgage debt is in fact higher than the value of their home.

“Nearly half of young homeowners faced with them. Many of them are the last few years to earn more, but they have the bad luck that they bought their house at the peak of the market. Therefore, they are stuck in their house just now attracts the housing again. With our offer, we want to help them on their way to their next home, “said mortgages boss Van Baars.

ABN Amro this water heater has a mortgage, including outstanding debt, which is a maximum of 115% of the market value of their new home . According to Van Baars applies only on condition that the income of the homeowner should be sufficient to carry the mortgage payments and must be repaid the outstanding debt in fifteen years. The co-finance the remaining debt at ABN Amro and subsidiary Florius is possible for mortgages, but also without NHG.

‘No additional interest

If all conditions are met, ABN brings Amro homeowners no extra charge interest on their outstanding debt. “We charge the regular rate. For a NHG mortgage with a fixed interest rate period of ten years, which is currently 2.7%, “Van Baars.

According to him make existing customers of ABN Amro al ‘piecemeal’ use of the offer. Eight in ten consumers who do approach a bank, be aged between 30 and 45 years. The average outstanding debt that they want to co-finance amounts to € 30,000.

Thanks to a measure of minister Block (Housing) their outstanding debt homeowners can also fifteen years remain tax deductible. Baars: “We hope that all these nudges in the back of transfer students

should also ensure that they will say. Now I dare ‘t in order to purchase another home”

Rabobank and ING

Rabobank also allows a reaction to make a distinction between existing and new customers to co-finance a residual debt into their mortgage. “Provided that obviously is financially sound. The affordability of the mortgage is paramount,” said a spokeswoman of Rabobank.

At ING, new customers can only knock with a residual debt if their mortgage lender is no longer active.