The Danish Supreme Court has today ruled in the case about administration margins. The decision establishes that Nykredit Realkredit A/S will continue to be bound by the undertaking relating to the lowering of administration margins which the Danish competition authorities imposed on Nykredit Realkredit A/S in connection with its takeover of Totalkredit in 2003. This means that Nykredit Realkredit A/S can only raise administration margin rates for private residential mortgages to market levels subject to prior approval from the competition authorities.
– We are naturally disappointed by the decision, not least as the Danish Maritime and Commercial Court found for Nykredit. However, we accept the decision, commented Michael Rasmussen, Group Chief Executive.
Residential mortgage lending continues unchanged through Totalkredit
The administration margins for the mortgage loans raised with Nykredit Realkredit A/S before 1 April 2012 will continue unchanged as a result of the Supreme Court decision. Since 1 April 2012, all new private residential mortgage lending in the Nykredit Group has been granted through Totalkredit, and this practice will continue unchanged.
For further information, please contact Nykredit Corporate Communications, tel +45 44 55 14 70.
