Higher administration margins and new price structure of mortgage loans

The economic climate and declining property prices have increased housing 
loan losses. Also, the statutory capital that Nykredit and Totalkredit have 
to provide as security for customer loans has become more expensive. This 
means that the costs of granting mortgage loans have risen.

For the first time in many years, Nykredit and Totalkredit therefore adjust 
the administration margins on mortgage loans to retail customers. The 
administration margin on existing loans will increase by 0.1 percentage point 
on 1 July 2010. For a loan of DKK 1m, this is equivalent to DKK 85 a month 
before tax and about DKK 60 a month after tax.

At the same time, we introduce a new and differentiated price structure for 
new mortgage loans under which the administration margins on floating-rate 
loans and interest-only loans will be slightly higher than on fixed-rate loans.

- We consider it reasonable that the price structure should more accurately 
reflect the risks and costs of the individual loan types, says 
Peter Engberg Jensen, Nykredit's Group Chief Executive.

- The total price increase of existing and new loans will cover part of the 
additional costs of granting mortgage loans. Also, we have intensified our 
general focus on reducing group costs, says Peter Engberg Jensen.

The administration margin on new fixed-rate repayment loans will rise by an 
average of 0.125 percentage point, depending on LTV ratio. Another 0.025 
percentage point will be added to the administration margin on floating-rate 
loans in case of maximum mortgaging, and 0.025 percentage point will also be 
added to the administration margin on interest-only loans.

In future, mortgage loans of more than DKK 3m will be considered on a 
case-by-case basis, and the administration margin may deviate by up to 0.15% 
from the list price, depending on risk assessment.

For further information, please contact Peter Engberg Jensen, Group Chief 
Executive, or Nels Petersen, Head of Corporate Communications, 
tel +45 44 55 14 70/ +45 20 22 22 72.