Raisin or rust: why Europe’s mortgage market faces an up-or-out moment

Reflections after VIP Congres 2025

The FiDA reality: mortgages will go digital

With the European Financial Data Access Regulation (FiDA) coming into force, mortgages, along with every other financial product, will soon have to become a package of bits, and with that, as portable as wiring money.

FiDA isn’t just about open finance; it embodies Europe’s vision for open finance, turning the concept into mandatory reality. It will require financial institutions to make all customer financial data available in standardized, machine-readable formats, making every service portable, comparable, and open to competition.

The current situation made protectionism possible, but these new regulations break this cycle.

A wake-up call for the industry

At VIP Congres 2025, I was shocked that in a room filled with professionals, more than half bankers, only one person even had a vague idea of what FiDA is. That’s alarming, because FiDA’s impact will surpass open banking, reshaping how banks handle customer data and creating real competitive pressure.

I came across the best explainer I’ve found so far in clear, plain words by Deloitte, which helped sharpen my thinking on FiDA’s potential impact: worth a read if you’re in the industry: FiDA: Open finance is coming.

Why mortgages must move

Mortgages are one of the last bastions of local banking. They’re large, illiquid, and heavily tied to country-specific processes. But FiDA creates the conditions for mortgages to become portable and competitive across borders.

Some argue switching lenders won’t make sense due to costs like notary and valuation fees, but that misses the opportunity at the end of fixed-interest periods: a small rate improvement can yield thousands in savings over a decade.

Take the average Dutch house price of €520,369 (source: Hypotheker). An 80% mortgage after your first fixed period means €416,000 outstanding. A 0.1% lower interest rate saves €416 per year; over ten years, that totals €4,160 in savings, enough to offset typical refinancing costs.

Breaking myths of local barriers

Other cynicism circles around the supposed inability of Dutch notaries to pledge mortgages at land registries for foreign lenders, or valuators to work with foreign banks. FALSE. Why couldn’t they? I still haven’t heard a valid reason. Our property valuations already follow harmonized, transparent standards. And why couldn’t a Dutch notary register a pledge on behalf of a foreign bank? Notaries handle cross-border transactions every day in areas like inheritances and commercial real estate. Mortgages are only local because we’ve decided they should be, not because it’s technically or legally impossible.

When price isn’t enough

Today’s consumers want financial brands they love; people’s banking habits have become part of their identity. My 11-year-old daughter recognized my Revolut card instantly, but had no clue where her own savings and current accounts are. Stickiness is no longer about the brand your parents chose.

Agreed: a mortgage isn’t as trivial as a checking account. But changing banks was once unthinkable too. That’s already changed.

What to do now

For banks:

• Assess your readiness for FiDA’s data-sharing requirements, not just for compliance, but as a competitive opportunity.
• Explore partnerships to offer cross-border mortgages or refinancing options.
• Reevaluate your core banking systems: can they handle portable mortgage data? If not, start modernization now.

For fintechs:

• Build tools that help consumers compare and switch mortgages; the market opportunity is coming.
• Set the standard. The European Commission is leaving this to the market — I’d say: HDN, raise your hand and show that you set this standard in the Netherlands years ago. The European variant of this isn’t far off.
• Look at how digital wallets could store and manage mortgage data.

For regulators:

• Ensure that FiDA’s implementation includes clear protocols for cross-border mortgage registration and enforcement.

For consumers:

• Start learning what FiDA could mean for your financial options. Don’t assume you’ll be stuck with your current bank or mortgage terms forever.

The call to action

I don’t know if Europe wants this, but the timing is perfect. FiDA is creating the conditions, technology is ready, and consumers are increasingly mobile. It’s up or out.

I’ve set my own alarm for Q3 2028, when I believe mortgages could realistically become fully portable if EC timelines hold, and banks will transition to financial information service providers.

The real obstacles are mental and cultural, not legal or technical. As my CCO, Eric Euwes, said: we need a challenger who dares to break with rusty habits and country borders. Then the market is open. TRUE.