There are many people who have to deal with double housing costs. This is because they have bought a new home, but have not yet been able to sell their old home. This is mainly due to the crisis. Banks and insurers offer insurance that consumers can use to hedge against double housing costs. This is often subject to conditions, such as that the consumer must take out the new mortgage with the bank in question. Read all about it in this article. Due to the economic crisis, more and more people own two houses. This usually causes many financial problems, because the housing costs also apply to both houses. They own both houses because they have already bought a house, but have not yet been able to sell their old house. This usually happens quite quickly, but that is difficult when the entire housing market is closed. The homeowner can usually maintain this for a period of several months, for example because he or she still has savings available, but in the long term this is quite difficult. The monthly costs then quickly become too high. One option is to lower the price of the house you want to sell so that it is sold earlier, but this will cost you money and you may be left with a residual debt.
Measures for people with double housing costs
The government wants to accommodate people with double housing costs. She does this because she wants to prevent the housing market from closing down completely and because she does not want people to be left behind with large debts. After all, they would therefore not be inclined to buy a new house before the old one has been sold. As a result, the housing market remains completely closed. A measure that the government introduced in 2011 means that the mortgage interest on both homes is deductible. Normally this interest is deductible, making it relatively cheap to buy a house. From now on, there is no need to pay a notional rental value on a home that is vacant for sale. Another measure that the government has taken is that it is now easier to rent out a home and that this can also be done for a longer period, without the tenant being given all rights.
Taking out bridging insurance
Insurers have also been offering the option of taking out bridging insurance for a few years now. This product mainly emerged because more and more homes were for sale for a longer period of time. By purchasing this product, the consumer covers himself against the risk of possible double housing costs in the event that a second home is for sale for a longer period of time. The insurance is often also offered when taking out a specific mortgage. You therefore pay the premium for the entire term of the mortgage. It is also a good idea to study the conditions carefully in advance. For example, there may be a maximum benefit period, for example twelve months. Another condition that banks and insurers can impose is that there must first be a certain waiting period. For example, you would pay double the housing costs yourself for the first six months. Requirements may also be imposed on the level of the sales price. A final condition that banks can impose is that you are only entitled to compensation if you take out the new mortgage with the same bank.
Insuring against double housing costs
At the same time, some insurers are still cautious about offering the product. This is because the market is closed to such an extent that the risk for the insurer also increases. If he or she has to pay out en masse, he or she may run into bankruptcy. In general terms, it is better for you not to take out insurance. With insurance, the average costs are always higher than the actual costs. At the same time, you are out of luck if you happen to be the one who has to deal with double housing costs. And your peace of mind is worth something too. Furthermore, insurance against double housing costs should not be confused with a bridging loan. In that case, the buyer and seller both pay double the housing costs. The advantage for the seller is that it makes it easier for him to sell his house.