How does Denmark's state-guaranteed mortgage scheme work?
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Loading... - Tobias Collin
- 15 Sep 2022
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The state-guaranteed mortgage scheme, “Lån på landet” (‘Loan in the Countryside’) has 17 participating banks and institutions at the time of writing. It took effect for three years from July 1st.
The scheme provides a state guarantee on a proportion of a mortgage taken out under the arrangement.
Customers at the banks can therefore benefit from having the Danish state as a guarantor on a part of their mortgage if they choose to make use of the scheme, which is designed to boost home ownership in provincial regions.
Recent years have seen reports that banks in some cases turn down mortgage applications in rural areas because the postcode is undesirable.
“Denmark is too small a country for such big differences as those we see because of the uneven housing market,” business minister Simon Kollerup said in a statement.
“That is why it’s so important for us to create opportunities to get a state guarantee on a proportion of the mortgage out in our rural districts. I’m pleased to see so many banks are prepared to offer these loans,” he said.
The 17 participating banks and institutions at the time of writing are:
Lån & Spar Bank A/S
Kreditbanken A/S
Broager Sparekasse
Sparekassen Thy
Arbejdernes Landsbank
Middelfart Sparekasse
Nordfyns Bank. Read More...
