Negotiated and registered mortgage debt

On the basis of these data, the number of households left with a residual debt, if they decide to sell the house, cannot be calculated. In this article, the starting point is the negotiated mortgage loan. If households have already paid off part of the interest-only mortgage, the actual debt will be lower than the negotiated mortgage loan.

The article ‘More than one million households have underwater mortgages’ published on 21 March 2013 shows that for more than one million households the registered mortgage debt exceeds the value of their home. The built-up capital earmarked to pay off the mortgage at the end of the term is not included in this article as it is not available per household. If it is included, fewer households would have underwater mortgages. If a household pays off the interest-only mortgage, the registered mortgage debt will be lower. The registered mortgage debt will be lower than the negotiated mortgage loan.