02/27/2024 | Press release | Distributed by Public on 02/27/2024 08:47
Statistical news focuses on the latest figures and trends in Danmarks Nationalbank's statistics. Statistical news is targeted at people who want quick insight into current financial data.
The mortgage institutions' lending with security in residential rental properties have increased by 5.5 per cent in the past year, reaching for the first time kr. 500 billion in nominal value by the end of January 2024. Most of these loans (96 per cent) are to customers in Denmark. Despite rising interest rates and tighter credit standards, mortgage lending has increased. Mortgage institutions explain the tighter credit standards to, among other factors, the Danish Financial Supervisory Authority's new guidelines from the spring 2023 regarding financing of rental properties and real estate projects, which have tightened requirements including self-financing. The market value of mortgage loans secured by residential rental properties has varied significantly since 2022 due to significant interest rate fluctuations, and it was recently estimated at kr. 465 billion.
Note:
Mortgage loans with security in residential rental properties is lending from mortgage institutions with security in properties categorized as "private rental properties".