Why are fewer mortgages being approved in Denmark?
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Loading... - Michals Filo
- 27 Apr 2023
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The number of new mortgages issued to home buyers in Denmark fell at the beginning of 2023 to its lowest level for four years.
The first quarter of this year saw the lowest number of mortgages approved since 2019, according to new data from Finans Danmark, the interest organisation for the banking sector.
During the first three months of 2023, a total of 15.2 billion kroner was loaned by banks for the purpose of buying homes. The total value of the loans is the lowest since 2014.
Interest rates are a key cause in the lending slow down, according to Finans Danmark’s CEO Ane Arnth Jensen.
“Increasing interest rates have made Danes more cautious about buying homes,” Jensen said in a press statement.
“That is coming to the fore in the demand for mortgages,” she said.
Last year saw a high number of homeowners take advantage of prevailing interest rates to restructure their mortgages and thereby reduce their outstanding payments. This has also seen less demand since the beginning of 2023. Read More…
