Study debt at the expense of a house for sale
Because mortgage lenders often still look at the original amount of the study debt, instead of the outstanding amount that has been repaid, study debts still have a major impact on the amount of mortgages. This makes it difficult for starters in the market. This appears from a recently published study by the Intercity Student Consultation (ISO).
The ISO conducted an inventory round among a number of major mortgage lenders. They have taken the calculation tools on the website of the mortgage provider itself as their starting point. “Although the rules have been relaxed since the introduction of the social loan system, there is not enough of this to be seen with these mortgage lenders. Borrowing in the “social” loan system deprives starters of the chance of a home, “said ISO chairman Tom van den Brink.
The ISO believes that this is contrary to a motion passed in the Lower House in 2015. With this motion, the minister was called upon to base the calculation of the amount of the mortgage on the current debt. This should be agreed with the Dutch Banking Association (NVB) and the Netherlands Authority for the Financial Markets (AFM).
“With a gross income of 40,000 euros and an average study debt of 21,000 euros, the maximum mortgage that can be taken out is reduced by 42,274 euros (old system) or 25,418 (new system). In many cases, this substantial difference means that starter cannot buy a home, which also causes a congestion in student accommodation. In addition, a study debt may still play a role for decades in taking out a mortgage despite the extra repayment of the debt. A deal is a deal: the norm should be for mortgage lenders to look at the current debt, not the original debt, ”says van den Brink.
No BKR registration
A study debt at DUO does not concern registration with the Credit Registration Office (BKR). According to the government, this is not necessary because a study debt is of a different nature than a consumer credit. This creates opportunities for concealing the student loan. A study by the BKR has already shown that this occurs, but by no means always consciously. Under the old scheme, approximately 39% of graduates did not give up their study debt when applying for a mortgage.
Own Home Association is of the opinion that the registration of study debts should be registered with the BKR. In this way they want to prevent starters from entering into an excessive financial obligation.