Dutch banks reject all mortgage applications with foreign income.
In the week of July 11 will be the ratification of a new European law: The Mortgage Credit Directive. Consequences are already disastrous for expatriates who work for international organizations and companies like Shell, Unilever and many others. Very bad for the investment climate in the Netherlands. Mortgage advisers and expatriate organizations raise the alarm bell and ask Minister Jeroen Dijsselbloem for action.
The Mortgage Credit Directive (MCD) aims to achieve uniform European rules when it comes to the provision of mortgages in the EU. However, there are still many questions about the MCD in the Dutch financial sector. The ratification has already been postponed because of the questions. However, reportedly Minister Jeroen Dijsselbloem will publish the MCD in the Official Gazette next week and the new mortgage rules will be applied in the Netherlands.
In anticipation of the ratification all Dutch banks have already taken action with regard to the large group of expats in the Netherlands to buy a house but earn their salary in a currency other than euros. The MCD provides in particular a rule that consumers may at any time transfer their mortgage in a currency other than the Euro. This will have direct currency risks that do not take the banks. With the result that all Dutch banks resolutely reject mortgage applications. Even if you’re the Shell CEO or the head of a UN agency in The Hague. If you earn you cannot get a mortgage at this time having a non-euro salary. This is a very large part of the housing market in the Randstad.
Meanwhile, Minister Jeroen Dijsselbloem refuses to talk about the serious impact on the mortgage market with the market and the consumer. He wants to wait for the consequences, whereas a few months underway and mortgage advisers their international clientele to sell daily no.
The Hague International Network calls on Minister Jeroen Dijsselbloem to sit down to find a solution as soon as possible with the Dutch banks, mortgage advisers and expatriate organizations. If not, this will further affect the investment climate in the Netherlands in a very negatively way.
Want more information on the effects of this new law visit our site www.tssolutions.nl