Two banks have signed out of the good community in the mortgage bank. Also the two largest banks (Nordea and Danske Bank). Why did they do that? And is it good for you as a borrower?
Since last summer, the banks have been able to offer loans on the basis of issuing bonds (SDO loans). So they can now basically be the same as the mortgage credit companies. So far, new products have been developed in both places, but over time it can easily be probable that the products will come from the banks – they can do it all, and the mortgage-credit companies cannot. Unreasonable legislation or not can be discussed, but it does mean that there will be a briefing from the banks (which owns mortgage companies) to get customers to go to the bank rather than to the mortgage company. That is what Nordea and Danske Bank have done.
Customers are demanding to get all and flexible services / products somewhere, so Nordea and Danske Bank may not have the long end here. Unfortunately, this also means that Danish mortgage credit, as we know it, is about to be shut down. The same banks’ steps to withdraw from the mortgage bank are the best and most recent argument for supporting this consequence. It also means that the mortgage bank can no longer rightly call itself “a council”.
It is a pity because the mortgage-credit council has always tried to adhere strictly to the facts of the mortgage-credit debate, and because the mortgage-credit council (despite being an interest organization) has almost always managed to put the borrowers’ agenda above the agenda of others.
This has been done because the foundation for mortgage credit in Denmark since the end of the 1700s has focused on the borrowers’ needs.
It is in principle therefore that we have been able to maintain the unique mortgage credit system in Denmark.
It is not good for you as a borrower that this situation changes. A new agenda will rise and the banks will develop the banking business and liquidate the mortgage. Therefore, I dare say that we will see rising prices for loans over the next five to ten years – because mortgage products will slowly disappear from the market. The two big banks are certainly well on their way.
It is then understandable that the banks will develop their products. The problem is that the transparency in the loan market will disappear if care is not taken that the legislation is based on the borrowers’ interest, and that does not make the new SDO legislation. It may well be that in just a few years everyone can get exactly the loan that fits in with their personal finances throughout their lives – but what does it do if you cannot compare prices and products in a proper way and if they total loan costs well and brand increases over time compared to now. You will only have new loan types if there are also cheaper loan types?
When it comes to your money, then you have to take care of what you are asking for – it may be you get it!