As from 3 May 2014, Nykredit and Totalkredit will be offering a fixed-rate repayment mortgage loan up to an LTV of 80% in order to meet customers' increasing demand for simple loans with fixed rates and repayments. Danish homeowners may raise this loan through one of Totalkredit's partner banks or one of Nykredit's customer centres.
Loans are funded by bonds issued through Nykredit's Capital Centre E (SDO).
– The price will be attractive, and thus the fixed-rate loans will be appealing to many customers, says Henrik Hjortshøj-Nielsen, Executive Vice President, Group Treasury. The current price of a 3% fixed-rate loans with repayments is around DKK 98.00. The existing fixed-rate bonds will close for issuance on 31 August 2014, and the lowest interest rate will thus be achieved for customers who raise a loan before 31 August.
Nykredit and Totalkredit estimate that 50,000 borrowers, who are currently paying 4% or more on their fixed-rate loans, will benefit from refinancing into 3% repayment loans. This would offer them lower payments and improved home equity protection, should interest rates rise and housing prices drop.
Questions regarding the bonds may be directed to Henrik Hjortshøj-Nielsen, Executive Vice President, Group Treasury, tel +45 44 55 10 40. Other questions may be directed to Corporate Communications, tel 45+ 44 55 14 72.
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