Regulatory Alerts2026-04-09
Interest-only mortgages require attention – engage in dialogue
The Dutch Financial Markets Authority (AFM) addresses the European Central Bank’s directive to reduce interest-only mortgage portfolios by arguing that these products remain essential for affordable housing and financial flexibility given the Netherlands’ strong pension wealth. AFM board member Jos Heuvelman calls on banks to proactively and carefully engage borrowers before loan terms expire, emphasizing that maintaining affordable monthly payments should allow customers to remain in their homes without mandatory early repayment. Consumers are advised to actively participate in these discussions, ideally with advisor support, to jointly minimize risks while ensuring sustainable housing affordability.
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