Home owners have financial concerns due to high mortgages

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Economy•6 May ’24 09:57Author: BNR Web Editorial

Many homeowners are concerned about the amount of the mortgage they have to pay in relation to other fixed costs. For example, two in five homeowners have difficulty making ends meet, according to research by the National Mortgage Guarantee (NHG). This also causes health problems, says Carla Muters, director of NHG. ‘Almost a quarter of people sleep poorly, are stressed or feel despondent. That is worrying.’

Home owners have financial concerns due to high mortgages

5 min 8 sec

Although the arrears that homeowners have on mortgage payments are historically low, this does not indicate the extent of the concerns among homeowners. Muters sums up that energy, groceries and many other products have become considerably more expensive in recent years. ‘Nothing seems to be wrong, but homeowners are very concerned about money.’

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The fact that there are great concerns is partly due to the small buffers that homeowners have, the NHG concludes. ’18 percent of homeowners appear to have no buffer to absorb a monthly income. That is very much.’ However, the reason why people do not ask for help is because they first reduce other expenses before paying for fixed costs, says Muters. ‘Other expenses are adjusted so that we can continue to pay those housing costs.’ It sounds logical, but according to her it is a ‘bad indication’ of the situation among households with their own home.

Shame due to problems

Because forty percent of home owners can ‘just or barely’ make ends meet, health problems also arise, Muters explains. ‘Almost a quarter of people sleep poorly, are stressed or feel despondent. That is worrying.’ Yet many of those homeowners who have concerns about their financial status refuse to ask for help. ‘Many people do not dare to report, also out of shame. They wait until there are major problems, but then help is simply more difficult,” Muters warns.

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Staff

She points out that people with financial problems can seek help by reporting to the municipality or from mortgage providers themselves. NHG itself also plays a role. ‘We look together with market parties at how people can be helped to keep their homes.’ This involves looking at how the financial management of the person in need of help can be improved, including with ‘budget coaches and job coaches’.

Many homeowners are concerned about the amount of the mortgage they have to pay in relation to other fixed costs. (ANP / Dutchphoto)