Market Development for Mortgage Credit Institutions 2020

Published 23-12-2021

In 2020, mortgage credit institutions experienced a decline in the total profit before tax. The result was DKK 17.2 bn in 2020 against DKK 21.7 bn in 2019.

The decline must be seen in the light of partly a high result in 2019 due to historically high remortgaging activity, and partly the effect of the COVID-19 crisis on impairments in 2020. Mortgage credit institution loans increased by 3.5 percent in 2020, and the share of mortgage loans with fixed interest rates and installments continued to grow. However, the share of interest-only new loans for owner-occupied homes increased. Both the low interest rate level, the low interest rate spread and the best practice rules that limit borrowers' access to risky
loans contributed to borrowers choosing loans with fixed interest rates to a greater extent. 

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Last updated 23-12-2021