CPH Post

Business

Danske Bank could bag half a billion a year from new mortgage deals

Expiry of old loans likely to have big impact on bank's income


Customers could see interest rate jump after old loans expire (Photo: Colourbox)

July 25, 2014
15:27

by Philip Tees


Jyllands-Posten reports that Danske Bank could have a big payday coming up as customers’ low-interest mortgages offered before the financial crisis are on the verge of expiring.

Until 2007 the bank offered a loan with interest at the national bank’s base rate, meaning that tens of thousands of customers are currently paying as little as 0.8 percent in interest.

Thomas Mitchell, the head of private banking at Danske Bank, confirmed that the loans expiring would have an effect on the bank’s bottom line. “I estimate that in the coming years there are 15,000 to 20,000 customers a year that have the old loan that is expiring,” he said.

“It is correct that this gives the bank additional earnings.”

John Norden , a partner at the bank comparison company Mybanker, estimates that Danske Bank could potentially expect an extra 500 million kroner in interest income when the loans are renegotiated. “There’s no doubt about it having been Denmark’s cheapest housing financing in a long time and it will be exciting to see what happens to customer’s conditions when the loans expire,” he said.



Related stories



Latest Comments

Zzzzzzzzzzzzzzzzzzzzz...................

(Bradley Greenwood on November 22, 2014 16:57)

Islamic dress is not like wearing a kilt. Women, and men, cover up for moral...

(William Harvey on November 22, 2014 16:22)

Were it not for the damage to the UK and to the EU, this would be very, very...

(Lorenzo Luis Albano Farias on November 22, 2014 16:02)

Danes and other Scandinavians are generally very decent tourists. It's only...

(Lorenzo Luis Albano Farias on November 22, 2014 14:30)

And now for the evil perspective: Most of those foreigners who learn Danish...

(Lorenzo Luis Albano Farias on November 22, 2014 13:54)

How so very right... 9 years in dk... i miss british tv so much...even...

(Gérard Bonnin on November 21, 2014 19:28)

Whats a "tilbud of 72 virgins"?

(Kl Queteimporta on November 21, 2014 09:46)

How many years till the National Dish is shawarma ?

(Jon Paris King on November 20, 2014 13:46)

Godspeed guys & Merry Christmas.

(Buzzy Sørensen on November 20, 2014 13:31)

Too much sun you get cancer, too little you die from lack of vitamin D......

(Alex DeGre?t on November 20, 2014 11:40)