Homeowners face higher monthly payments as fixed-rate mortgages expire

Homeowners Face Higher Monthly Payments as Fixed-Rate Mortgages Expire

Homeowners who took out mortgages over the past decade will experience an increase in their monthly payments as the fixed-rate periods come to an end, due to recent interest rate hikes. However, according to De Hypotheker, this impact is less severe than initially expected because the rise in interest rates also increases the mortgage tax deduction.

Interest Rate Changes and Their Effects

Between 2016 and 2021, interest rates were at historically low levels. Since then, the average ten-year mortgage rate without the National Mortgage Guarantee (NHG) has surged by more than 3 percentage points, climbing from 1.05% to 4.07%. During the period of low rates, about 16% of mortgages were taken with fixed rates lasting up to ten years, De Hypotheker notes.

Impact on Homeowners

De Hypotheker analyzed various scenarios and concluded that homeowners with partially interest-only mortgages are the most affected. For instance, a couple who in 2016 took out a €450,000 mortgage at 2.4% fixed for ten years, including €200,000 interest-only, would now face an extra €206 per month at the current average rate of 4.05%.

Thanks to increased mortgage interest deductions, the payment rise is limited. Without this tax benefit, their monthly payments would have increased by €430.

Mark de Rijke, commercial director at De Hypotheker, summarizes that overall, the increased interest rates’ impact on households remains generally manageable.

Summary

The end of fixed-rate mortgage periods coincides with rising interest rates, pushing up monthly payments, but higher mortgage tax deductions help soften the financial impact for many homeowners.

NL Times — 2025-10-31