Outlook: limited losses and stable spreads are expected.
After the initial shock of the coronavirus outbreak, financial markets recovered after strong fiscal and monetary policy measures. While spreads in Dutch mortgages have stabilized after the initial widening in April and May, arrears have not increased. We believe, however, that the Dutch mortgage market will be affected by the rise in unemployment as well as by a drop in consumer confidence. Nevertheless, we have not seen much impact yet and the future impact on mortgage losses is expected to be limited.
