Mortgages shrink as code of conduct bites

The introduction of a new code of conduct for mortgage lenders has led to a reduction of up to 15% in the amount people can borrow to buy a new home, the Financieele Dagblad reports today.

Hein Blocks, director of the Dutch banking association (NVB) declined to say which banks had reduced their lending, but said the average reduction in the size of mortgages was 5%.
The code of conduct, which came into force in January, puts a ceiling of 4.5 times gross annual salary on a mortgage loan. Some one in five of mortgages prior to January broke this limit, the paper says.

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