Due to new rules, interest averaging has become cheaper. Banks may not charge extra costs for averaging. Can your mortgage interest rate be lowered?
Only current costs with interest averaging
New rules for interest averaging apply from 1 July 2019. From then on, banks are not allowed to charge more costs than the ‘current financial disadvantage suffered’. Just as this is already the case with reshuffling. This means that banks are no longer allowed to charge interest surcharge when averaging.
Banks are now using this scope to cover the risk that customers will move in the short term and thus switch to another bank without penalty. It therefore becomes less attractive for banks to offer interest-rate averaging.
Consumers better protected with new rules
The new rules must protect consumers better. On the other hand, the right to reimbursement-free scope expires in the case of interest averaging. Previously, you did not pay penalty interest on 10% to 20% of the mortgage sum, just as with a transfer. After all, you do not redeem with interest averaging.
Interest rate averaging is a way to take advantage of the low interest rate. The interest you have set is then averaged with the market rate at the same bank. The costs are largely in the new interest rate, which means you ‘feel’ it less. Read more about the advantages and disadvantages of oversuiting and interest averaging.
As a result, interest averaging is especially popular with homeowners who want to lower their mortgage interest rates, but recoil from the high costs. The disadvantage is that you are still stuck to your old bank and mortgage. The saving is often lower than with a transfer, because you can rebuild the mortgage on the latter.
Do you want to reschedule or interest averaging? Start a calculation of your benefit without obligation.
(Temporary) stop interest mediation at banks
The new rules also mean that interest-rate averaging becomes less interesting for banks. In an explanation, given their calculation method, it is no longer possible to offer interest averaging.
ABN AMRO also had to adjust the calculation system to the new regulations. As a result, interest-rate averaging at the bank was temporarily not possible.
In it, ING indicates that it is already using the right method, which means that nothing will change for them. Goodbank does have to adjust the systems, but it continued to offer interest-rate averaging.
Of the banks that now offer interest-rate averaging, three do not yet want to give a definitive answer about this service in the future.
No reimbursement for customers
According to the Netherlands Authority for the Financial Markets, anyone who has used interest-rate averaging cannot claim reimbursement. After all, the interest surcharge was simply permitted. The regulator makes the comment ‘as long as banks have adhered to the rules’. This has not always been the case in the past.