Refinancing of adjustable-rate mortgage loans in social housing
The Minister for Transport, Building, and Housing decides in detail which types of loans will be used for the refinancing of adjustable-rate mortgage loans in social housing, cf. the Act on Social Housing (almenboligloven).
At the end of the third quarter of 2018, the total refinancing of adjustable-rate mortgage loans subsidised by the state or by Landsbyggefonden amounts to approximately DKK 10.8 billion.
The loans will be refinanced with state guaranteed adjustable-rate loans in the 10-year interest rate re-sets.
This means that loans worth approximately DKK 10.8 billion will be changed from a 5-year interest fixing period to a 10-year interest fixing period.
In respect to state subsidised construction of new social housing and renovation of social housing with support from Landsbyggefonden, it is announced that these projects will be financed by state guaranteed adjustable-rate mortgage loans in 10-year interest rate resets. This will be in effect for loans issued after the 1 st of July 2018.
The state expects to make an offer for all the issued state guaranteed bonds.
Yours sincerely,
Lise Heinesen Head of Division
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