Homeowners face higher monthly payments as fixed-rate mortgages expire

Homeowners Face Higher Monthly Payments as Fixed-Rate Mortgages Expire

Many homeowners are now confronting higher monthly mortgage costs as their fixed-rate terms end, following recent increases in interest rates. De Hypotheker reports that the overall impact is milder than expected because the rising rates also enhance mortgage tax deductions.

Background on Interest Rates

Between 2016 and 2021, mortgage interest rates were at historic lows. Since then, the average ten-year mortgage rate without the National Mortgage Guarantee (NHG) has climbed from 1.05 percent to around 4.07 percent — an increase of more than three percentage points.

Mortgage Trends

During the low-rate period, about 16 percent of all mortgages were signed with a fixed rate of up to ten years. According to De Hypotheker, borrowers who chose partially interest-only loans are now facing the sharpest increases in repayment amounts.

Example Scenario

A couple who in 2016 took out a 450,000-euro mortgage at 2.4 percent for ten years, including 200,000 euros interest-only, would now pay about 206 euros more per month at today’s average rate of 4.05 percent.

With the support of tax deductions on mortgage interest, their increase remains moderate. Without that advantage, their monthly expenses would grow by around 430 euros.

Expert Insight

“The impact of the higher interest rates on households seems generally manageable,” summarized Mark de Rijke, commercial director at De Hypotheker.

Author’s Summary

As fixed-rate periods end, mortgage costs are rising, but improved tax reliefs cushion the impact, keeping overall financial pressure on households largely under control.

NL Times — 2025-10-31