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Low interest rates lead to increased mortgage problems
The Belgian housing market’s low interest rates of the past few months have enticed a number of property buyers to make hasty decisions, leading to financial trouble for some, according to Didier Noël, coordinator at the Central Individual Credit Register of the National Bank of Belgium.
Noël told the Sudpresse newspapers that 45,782 homeowners were unable to make their mortgage payment in March, an increase of 4.5% compared to the same time last year. An additional 34,474 home owners were late with their mortgage payment last month, an increase of 5.6% compared to March last year.
Many potential buyers, lured by the low interest rates, decide to take out a mortgage without first adequately calculating how heavily the loan will weigh on their budget, according to Noël.
Comments
Odd, considering how the bank/lender is supposed to make sure you can afford the repayments. Are they still enforcing that ridiculous payments may not exceed one third of your net income rule?
Banks are ruthless money-sharks blackmailing the naive customer into 'taking on too much', not batting an eye. It is about time rules turned stricter, for the customer's sake if anything. More alternatives should be found in the case of 'shipwreck' , offering sufficient insurance and repayment facilities. The consequences of non-(re)payment can be terrible (see : U.S. crisis not so very long ago!).