Since the typical rent for a small apartment in Amsterdam is around €1,750 a month, many UK citizens who move to the Netherlands are keen to buy a place of their own as soon as possible.
Getting a mortgage in another country can be challenging. The rules are different, the paperwork is often in another language, and there will be more administration involved than buying in your own country. So, we’ve outlined what you need to know about mortgages in the Netherlands before you apply.
Can a UK citizen get a mortgage in the Netherlands?
Yes. UK citizens can get a mortgage on a property in the Netherlands as long as they can prove their residency there. So, you’ll need to have a Dutch residency permit. You’ll also need your citizen service number (BSN). If you’ve just arrived in the Netherlands and don’t yet have one, you’ll need to register in the municipality that you live in to receive one.
It’s very difficult to get a mortgage in the Netherlands if you don’t live there. So, it’s not a great choice for people based in the UK hoping to invest in property in the EU. If you’re interested in your other options, read our guide to overseas mortgages.
Speak to a Overseas mortgage expert
Maximise your chance of approval with a dedicated specialist broker
Rules, deposits, and lending criteria
There’s no such thing as an expat mortgage in the Netherlands. So, you’ll be applying for the same mortgages as Dutch citizens and, in theory, the lending requirements are the same. In practice, you may find that lenders are a little stricter in applying their lending criteria for expats, and for other applicants considered higher risk, like the self-employed.
Here’s a summary of the typical rules:
Most lenders will only consider applications from people who have lived in the Netherlands for a minimum of six months already. So, if you’re willing to rent for your first few months in the country, you’ll find you have a lot more options when you apply for a mortgage.
Ideally, you should have a permanent contract of employment. If you’re a temporary worker, you may need a letter of intent from your employer stating that they plan to renew your contract when it ends.
If you’re a business owner, your company must be registered with the Dutch Chamber of Commerce, and you’ll need three years of accounts. Freelancers and self-employed people will need adequate proof of their income for the last two-to-three years.
There’s no official minimum income requirement, but some lenders will require your income to be paid in euros. Or, if you receive your income in a foreign currency (e.g. pounds sterling), they may only consider 90% of it when deciding how much you can borrow. This is to allow for fluctuations in the exchange rate.
Mortgages in the Netherlands are available for up to 100% of the property value. However, it’s not always possible to borrow that amount and lenders may require a deposit. This is more likely if you’re a non-EU citizen.
How to get a mortgage in Holland
Here’s our three-step process for buying your home in the Netherlands.
Check that you can afford to buy
Since 100% mortgages are common in the Netherlands, many people assume they can afford to buy a home. However, even if you qualify for a mortgage at this level, the other costs of buying typically add up to 4-6% of the property purchase price. These include:
- Transfer tax (2% of the purchase price. Buyers under the age of 35 are exempt on purchases under €440,000)
- Mortgage valuation (€300-1,000)
- Structural survey (€300-900)
- Mortgage arrangement fee (varies between lenders)
- Notary fee (€1,000-2,000)
- National Mortgage Guarantee (0.6% of the mortgage amount. Optional protection if you’re unable to pay your mortgage, available on properties up to €405,000)
You’ll also need to put down a deposit of 10% of the property value when the seller accepts your offer. You can either pay this in cash or provide a bank guarantee. If you back out of the sales agreement without a valid reason, this will be paid to the seller.
Choose your mortgage type
In the UK, you’ll have a choice between a fixed-rate mortgage and a variable-rate mortgage. This is also true in the Netherlands, but you’ll also need to make another choice between different mortgage types. The two most common types of mortgages are:
- A linear mortgage. This means that you pay off a set amount of the loan each month, plus interest. Each year, the amount of interest due will fall (as the remaining loan amount is lower). So, your repayments will fall each year.
- An annuity mortgage. This means that you pay off the same amount every month. In the early years, a high proportion of this amount will be interest. As time goes on and you make more repayments, a lower proportion will be interest, and more of your monthly payment goes towards paying off the loan.
This is a complex decision, especially when you’re navigating the Dutch mortgage system for the first time and don’t have Dutch family members you can ask for advice. Each mortgage option has different tax deduction implications, so you may want to seek an expert opinion before proceeding.
Speak to an international broker
You can apply directly to Dutch lenders, and you can also work with a Dutch broker, but there are several benefits to working with an international broker. Not only will they speak English, but they’ll know which aspects of Dutch mortgages are unfamiliar to applicants from the UK and can explain these in terms you’ll understand.
They’re also likely to have more experience in making applications on behalf of British expats, and the typical pitfalls and barriers. They’ll know the market and which lenders offer the best terms to someone in your situation.
For example, they may know which lender is most likely to give you a 100% mortgage despite you only having lived in the Netherlands for a short time. Or they could help you find a lender that will consider foreign currency income.
We're so confident in our service, we guarantee it.
We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100*
How much could you borrow?
In the Netherlands, you can usually borrow up to five times your income. If you’re applying with another person, most lenders will consider 100% of the higher earner’s income and 90% of the lower earner’s income. So, if one partner earns €100,000 and the other earns €50,000, you could be able to borrow up to €725,000.
If you’d like to estimate how much you could borrow, try our mortgage calculator.
Mortgage Affordability Calculator
Our affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest.
You could borrow up to
Most lenders would consider letting you borrow
This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.
Some lenders would consider letting you borrow
This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.
A minority of lenders would consider letting you borrow
This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.
Get Started with an expert broker to find out exactly how much you could borrow.
Lenders in the Netherlands
You can get a mortgage with one of the major Dutch banks, including ABN AMRO, ING, Rabobank, and SNS. However, most of these only offer mortgage information and applications in Dutch. So, it helps to have an English-speaking broker to guide you through the application.
The major banks also tend to favour Dutch citizens. You may be able to get a more competitive rate by applying to a smaller bank, an international mortgage provider, a pension fund or insurance company. Your international broker will be able to make a recommendation that best suits your circumstances.
Absolute Fab: I got a mortgage as an ex-bankrupt !!!
As an ex-bankrupt with a qualified Annulment I had to take several bridging loans to cover my debt. I found Online Mortgage Advisor who offered fantastic but specific insight to my issues. Within 6 weeks we exchanged contracts and I am now debt-free, and my house is safe.
They pulled out all the stops
Great staff and good communication. Helped us understand the process and gone over and above to help in a difficult situation. Other companies couldn't even be bothered but Thank you so much!
Anneke Woolley, 12 days ago
Our advisor was amazing from the start!
Aaron went above and beyond. He worked late and kept in contact with me and worked tirelessly to find me the best mortgage he could
James, 10 days ago
Rated 4.8 out of 5 stars across Trustpilot, Feefo and Google
Buy-to-let in the Netherlands
It’s not easy to get a buy-to-let mortgage in the Netherlands. First, you must:
- Be an EU citizen
- Earn more than €45,000 a year
- Have lived and worked in the Netherlands for three years
You’ll also need a deposit of around 30% of the property value. You can get an interest-only mortgage for up to 50% of the property value, while the remaining 20% must be repaid over 10 years.
Plus, you’ll need to show that the rental income of the property exceeds the mortgage repayments by 25%. Buy-to-let mortgage rates are higher than standard mortgage rates and your other costs will be higher too (for example, the transfer tax will be 10.4%)
Note that both Amsterdam and Rotterdam have rules that prevent investors from buying cheaper homes to rent out. In Amsterdam, you cannot buy a property for under €512,000 unless you plan to live in it or let it to a close relative. In Rotterdam, the limit is €355,000.
Speak to a broker who specialises in Dutch mortgages
If you’re ready to start the process of getting a mortgage in the Netherlands, you’ll need to find the right international broker. This should be someone who specialises in the Dutch market for British buyers.
We work with numerous brokers who meet this description so, if you’d like to speak to one, just give us a call on 0808 189 2301 or enquire online.
Speak to a Overseas mortgage expert
Maximise your chance of approval with a dedicated specialist broker
Yes. If you want to buy a new home before you’ve sold your existing home, you can get a bridging mortgage. This allows you to use your equity in your current home as security to buy the new one. However, lenders will consider this high risk and you’ll pay a lot in interest. It’s worth speaking to an expert to see if this is your best option.