'If banks would only sell mortgages with variable interest rates as a result of new bookkeeping rules, housing expenses would be heavily dependent on interest rates. This new international regulation will have detremental effects on the economy. Exactly when acquiring real estate, the consumer is looking for long term security', according to NVM President Oscar Smit.
The NVM (Dutch Real Estate Brokers Association) supports the warning by the ING Group and the uneasiness of Vereniging Eigen Huis (Dutch Hokmeowners Association). According to Smit, in the UK it has been proven that by abolishing fixed mortgage rates negative economic effects will be the result.
Variable interest rates may lead to large swings in consumerÂ's spendable income. Moreover, both banks and consumers will become very critical in concluding mortgage loans in the future'.
(source: NVM)
