Raise mortgage guarantee, say MPs

Wednesday 10 December 2008

The national mortgage guarantee should be raised to €350,000 to encourage banks to give loans on more expensive houses, according to a parliamentary on Tuesday.

The guarantee is currently €265,000 which includes the cost of the house and the fees involved. The guarantee means that if the mortgage holder defaults on payments, a special fund will pay off the debt.

Last week, new housing minister Eberhard van der Laan said he did not think the time was right to increase the size of the guarantee.

© DutchNews.nl

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