Nykredit and Totalkredit have decided to extend the
minimum period of notice required if customers wish
to prepay or remortgage their loans from one month
to two months prior to refinancing. The change will
apply to all types of loans subject to refinancing and
will become effective from and including the refinancing
conducted on 1 April 2012. However, Nykredit and
Totalkredit are informing their customers already now
to give them ample notice.
As a result of the change, customers with eg F1/X1 loans
(ARMs funded by 1-year bonds) will, as from April 2012,
be required to give notice one month sooner than at
present if they wish to prepay their F1/X1 loans or
remortgage them into F3/X3 loans (ARMs funded by
3-year bonds) when refinancing.
The longer period of notice reflects the Nykredit Group's
preparations for the antici-pated future EU regulation, one
consequence of which will be that mortgage banks will
have to conduct their refinancing operations at least 30
days prior to maturity of the existing bonds. These rules
are expected to come into force in 2015.
The extended period of notice will enable Nykredit to
conduct refinancing auctions earlier than today.
***
Questions may be addressed to Henrik Hjortshøj-Nielsen,
Executive Vice President, Group Treasury, tel +45 44 55
10 40, or Nels Petersen, Head of Corporate
Communications, tel + 45 44 55 14 70.
