Two-tier mortgaging for retail customers from 25 June 2012

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24 May 2012

From 25 June 2012, lending to retail customers of Nykredit and of the partner banks of Totalkredit will be based on two-tier mortgaging in Totalkredit if the loan amount exceeds 60% of the property value. This completes the implementation of the initiatives announced in a stock exchange announcement dated 21 June 2011.

Two-tier mortgaging will be applied where the total loan amount exceeds 60% of the property value – typically in connection with:

  • Raising of loans for purchasing a new house or flat
  • Refinancing of existing loans
  • Raising of supplementary loans.

Existing loans will not be affected. Nor will there be any changes in the following situations:

  • On interest rate adjustment of existing loans
  • On raising or refinancing of loans below 60% of the property value
  • On change of interest reset periods of adjustable-rate mortgage loans (ARMs), eg from 1-year to 5-year interest rate adjustment.

Mortgaging up to 60% of the property value (base loan) will still take place according to the rules for SDO bonds, while mortgaging in the 60–80% loan-to-value range (top loan) will be funded by way of RO bonds. This will reduce the requirement of supplementary collateral to be posted by the Nykredit Group in case of declining property prices, which as previously announced is the reason for the introduction of two-tier mortgaging for retail customers.

Customers who have received loan offers on or before 22 June 2012 may have their loans disbursed according to the current rules until 15 July 2012.

See the facts on two-tier mortgaging below and the description at and

Enquiries 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/+45 20 22 22 72.

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