Good news for these homeowners: So far down the interest rates

It is common for the summer holidays to arouse dreams of sun and beach, but for about 300,000 homeowners it will also be the opportunity to get a little easier at the loan installments.

Twice a year-January 1 and July 1-the interest rate on so-called F-card loans is adjusted, and now a downward movement is drawn for the third time in a row.

Where interest rates today are at about 2.8 percent, expectations point to a level near 2 percent at the turn of the month, and it can be felt directly on the purse.

At Totalkredit, chief analyst Sune Malthe-Thagaard describes how the easing of the central banks is turned into visible relief for borrowers:

« The ECB has put the interest rate down four times just this year, and it gets the homeowners with short loans so joy now. »

He explains that a downgrade will mean a monthly saving of about DKK 400 after tax per million borrowed.

Expect further reductions

Behind the figures is a year with a total of eight interest rate reductions from the European Central Bank and the National Bank, most recently cemented last week, when Danmarks Nationalbank’s deposit rate was reduced to 1.6 percent.

The short housing interest rates follow closely, and in just twelve months the interest payment on an F-card loan is almost halved from 3.9 percent at the top last year.

In addition to the fall in interest rates from July, Totalkredit is waiting two more reductions, so borrowers can look forward to an interest rate of about 1.8 percent against next year.

Nordea Kredit has a more cautious estimate and estimates that today’s correction may already be the last interest rate reduction for several years:

« We think it will be the last time that homeowners with a short interest rate loan are given interest rates, » says housing economist Lise Nytoft Bergmann, adding that she expects unchanged levels until the end of 2026.

While banks and mortgages follow each other closely in determining the new rates, the homeowners are keeping the weather in excitement, because Denmark is once again confirmed that the short interest rates are on their way downhill.