You are about to buy your (first) home. Chances are that you will be asked whether you want to be included in the National Mortgage Guarantee scheme. What protection does this scheme offer and when can you use it? You can read everything about the National Mortgage Guarantee in this article!
How does the National Mortgage Guarantee scheme protect you?
The National Mortgage Guarantee is like a safety net. A safety net you can fall back on if due to personal circumstances, you can no longer afford your mortgage, or if after having sold your home, you are left with a residual debt. You can be included in the guarantee scheme if you buy a property up to the average purchase price. The average purchase price for this year (2018) has been set at € 265,000.
How is the NMG threshold determined?
The average house price is reviewed on 1 November of each year. The new threshold amount for the coming year is determined on that basis. The new threshold is the average house price + 1%. In 2018, the maximum purchase price of a house may amount to € 265,000.
If you buy a house and immediately implement energy-saving measures causing the mortgage to increase, the average house price + 6% applies instead. The exact amount for this is
You can no longer afford the mortgage under the NMG
There may be various reasons as to why you can no longer afford to pay the mortgage. You are made redundant, you become incapacitated or you split up from your partner. In that case, you may be forced to sell the house. Fortunately, in such situations, your mortgage comes under the NMG. In the event of a residual debt as a result of the sale, it can be waived under certain conditions.
If you are expected to default on your payment obligations only temporarily, it may be interesting to make use of the Housing Allowance Facility (HAF). This allows you to temporarily reduce your mortgage payments. Please note that doesn’t mean that the debt is cancelled.
Opt in the National Mortgage Guarantee scheme or not?
Inclusion in the National Mortgage Guarantee scheme is not free of charge. The scheme charges a one-off payment of 1% of your mortgage amount. Whether it is interesting to opt into the scheme depends on your personal situation. The main question is whether you can continue to pay your mortgage under difficult circumstances. Freek Hypotheek or other mortgage consultants can give you objective advice!