What Is A  Dutch Style Mortgage?

Dutch-style mortgages are a fresh and innovative addition to the UK mortgage market, currently available through just one lender and accessible via mortgage advisers like us. Designed for borrowers who value both certainty and flexibility, this type of mortgage offers a unique structure where the interest rate automatically decreases as the loan-to-value (LTV) reduces—without the need to remortgage or lock into a fixed rate. For example, if you start with an LTV of 90%, your rate will automatically drop once you reach 85%.

Another standout feature is the option for longer mortgage terms, with durations of up to 15 years—considerably longer than what many high street lenders typically offer. Borrowers also benefit from uncapped overpayments, whereas most traditional lenders restrict overpayments to just 10% of the mortgage debt per year. With Dutch-style mortgages, you can pay off as much as you like, whenever you like. Additionally, there are no early repayment charges if you decide to sell your property during the mortgage term, providing even more flexibility. However, it's worth noting that ERCs will apply if you choose to remortgage.

Many of these features are commonplace for mortgages in countries like the Netherlands, which is why these products are referred to as Dutch-style mortgages. Their unique structure provides a balance of stability and freedom, making them an attractive option for borrowers looking to manage their mortgage on their own terms.

How Is A Dutch-style Mortgage Different From A Normal Mortgage? 

A Dutch-style mortgage differs from a conventional mortgage primarily due to its long, fixed-rate periods, which are adjusted based on the loan-to-value ratio. During this fixed period, the lender updates the rate without requiring the borrower to apply for a new fixed deal or remortgage, unlike conventional mortgages that often involve applying for a new rate or switching lenders. This streamlined process helps avoid additional fees such as lender or valuation fees. Moreover, Dutch-style mortgages offer the advantage of no early repayment charges if the borrower decides to move, and they allow for unlimited overpayments without incurring penalties, which contrasts with the restrictions often found in conventional mortgage agreements.

How Do I Get A Dutch Style Mortgage? 

This type of mortgage is exclusively offered by one UK mortgage lender, April Mortgages, and all applications must be submitted through a qualified mortgage adviser, such as ourselves. We’ll guide you through understanding the product, underwriting the application, and ensuring its success once submitted. Our services come at no cost to you, as we receive a commission from the lender upon successful mortgage approval. Additionally, we will assist you in comparing the deals offered by April Mortgages with the wider mortgage market, helping you find the best option for your needs.