ABN AMRO and Florius adjust policy on interest-only mortgages

Gitte van Haaren, CEO of ABN AMRO Hypotheken Groep: “To support future-proof and worry-free living, ABN AMRO and Florius have been actively informing clients for many years about potential risks associated with interest-only mortgages. We believe it is important to be transparent about possible solutions at the end of the mortgage term. We do this together with the adviser to arrive at a suitable, affordable solution if the client is unable to repay the mortgage in one lump sum. We took the interests of our existing clients into account when developing our tightened policy on interest-only mortgages.”

What will change for existing clients?

Nothing will change for ABN AMRO and Florius clients who leave their existing mortgage unchanged. Nor will entering into a new fixed-interest period impact the current interest-only portion. The tightened rules will apply only if a client makes a substantive change to the mortgage, such as new financing for moving house or in case of an increase. In that case, a maximum interest-only portion of 30% will apply, as well as a maximum interest-only amount that depends on the value of the property. The adjusted policy is also the result of market developments, contact with our clients and supervisory authorities.

Refinancing at the end of the term

Clients with an ABN AMRO or Florius mortgage will still be able to refinance up to 50% of the property value on an interest-only basis at the end of the term. This remains unchanged.

Maximum interest-only amounts by property value