The average mortgage interest rate for between two and five years averaged 3.54% in May, its lowest figure since summer 2005, the Dutch central bank said on Wednesday.

Mortgage brokers say the low interest rates have led to an increase in demand, particularly from first-time buyers.

Current mortgage holders are also looking at the possibility of switching providers to take advantage of the lower rates.  The Hypotheker mortgage provider told news agency ANP it has seen a 50% increase in inquries from people looking to switch mortgages over the past four weeks.