ABN AMRO is seeing an increase in the number of clients making overpayments on their mortgage. In the first half of 2014, for example, the number of additional repayments rose by 48% compared with the first half of 2012. The increase is now flattening out somewhat: the increase in the first half of 2014 compared with the first six months of 2013 was just under 5%.
The average extra payment in 2014 was just under EUR 10,000. Around 20% of the extra repayments are made by clients who are in negative equity.
Since 1 November 2013, ABN AMRO clients have been able to make penalty-free extra repayments up to the most recently assessed value of their home. Around 1,000 clients have made use of this facility to date, paying an average amount of EUR 40,000.
ABN AMRO believes that the rise in overpayments is unlikely to increase further. Confidence in the housing market is increasing, and the savings that clients can address to make such payments are not infinite.