news and press Press releases a.s.r. to introduce interest-only mortgage with a fixed interest rate for life
Press Utrecht 28 October 2020 09:00 EU/Amsterdam

a.s.r. to introduce interest-only mortgage with a fixed interest rate for life

a.s.r. will offer an interest-only mortgage from November, with a lifetime interest rate and fixed monthly payments. The Levensrente hypotheek (Life-interest mortgage) is intended for customers who have reached their state pension age and wish to take up any surplus value of their home. a.s.r. will introduce the Levensrente hypotheek today during the HypoVak 2020, the annual trade fair for everyone working in the mortgage sector, hosted in the Netherlands.

In November of this year, a.s.r. will expand its product range with the Levensrente hypotheek. This mortgage is intended for customers who have reached the state pension age and are thus entitled to a state pension (AOW). With this mortgage, customers have the possibility to take up any surplus value of their home up to a maximum of 50% of the value of their home, with a fixed interest rate for life.

With the Levensrente hypotheek, the customer only pays interest on the loan each month. The interest is fixed for life, for as long as the customer lives in the home. As no repayments are made, the mortgage debt remains the same and the monthly costs are lower than with a mortgage type where repayments are made monthly. For this mortgage, there is no an annuity test, as calculations are made purely based on what the customer will actually pay. In other words, the mortgage is tested for actual monthly costs. Because an interest-only mortgage involves lower costs than an annuity mortgage, customers with only an AOW or a small pension can also withdraw a considerable amount of surplus value of their home.

Herbert Meinders, chain manager mortgages at a.s.r.: ‘For those who reached the state pension age and have few financial resources at their immediate disposal, we see a growing demand to extract value from their homes. These people have often lived in the same house for a long time and possess a home with a considerable surplus value. With this product, a.s.r. wants to offer a simple, transparent and honest solution to this target group to extract the potential surplus value from their home’.

For more information visit: www.asr.nl/levensrente-hypotheek
(Dutch only)

Mortgages