Dutch mortgage rates climb as US‑Iran tensions push lenders to raise fixed rates

Around half of Dutch mortgage lenders raised their fixed‑rate mortgages after the escalation of tensions between the United States and Iran. The average ten‑year fixed rate with NHG increased modestly from 3.90% to 3.92%.

At the same time, banks continue to operate on thin margins for new mortgages, roughly 40% below the long‑term average. They offset these low margins by drawing on income from other financial products and by using cheap household savings as a funding source. The competition from insurers, pension funds and other financiers keeps pressure on margins, but large banks maintain market share by leveraging the broader client relationship.