- Facts about the Danish mortgage
- Information film
- Statutory characteristics
- The balancing principle
- General and specific balance principle
- Market-based prepayment
- Main types of mortgage loan
- Valuation and LTV criteria
- Covered Bond Legislation
- Facts on the Danish Economy
Main types of mortgage loan
Today, mortgage banks offer fixed-rate loans, adjustable-rate mortgages and floating-rate loans (with or without interest rate cap) as the main types of mortgage loan. All loan types are offered with interest-only periods.
The Danish mortgage credit market is characterised by standard products in the private market. They are not tailored to the needs of the individual customer. On the other hand, there are so many varieties of the standard solutions that makes it possible to the individual borrower to select precisely the loan that is best suited to his/her individual situation.
Standard products are cheaper than individually tailored solutions – and this helps stimulate competition where there is transparency in regard to prices and products. It also leads to higher flexibility, as it is easier for the borrower to replace one standard product with another. In the corporate market, there are bigger possibilities for tailoring individual solutions.
That said, the main types of mortgage loans are: