Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
F3 loans are private customers’ preferred new variable rate mortgage loan
In the first four months of 2024, private customers have taken out 17.900 new mortgage loans with variable interest rates, with a total value of kr. 36,7 billion. Hereof, more than every third new loan is an F3 loan (a loan with a three-year interest rate fixing period), making it the preferred new mortgage loan with variable interest rate for private customers. Following that are loans with very short interest rate fixing periods of 3 or 6 months. Until the start of 2024 this loan type has, despite a downward trend, been the most popular variable interest rate choice since the sharp increase in mortgage interest rates began in early 2022. In subsequent rankings, F1 and F5 loans each account for approximately 18 pct. of new loans with variable interest rates. Before 2022, the F5 loan was the most widespread type of variable interest rate loan for several years, making up more than half of private customers’ new loans with variable interest rates. Private customers’ renewed interest in loan types with slightly longer interest rate fixings has caused the average interest rate fixing period on their new loans with variable interest rates to increase to just over 2 years and 4 months in the first four months of 2024. In comparison, it was just under 2 years in 2023.
Private customers are moving towards longer variable mortgage interest rates
Note:
The figure shows the distribution of debt of new variable-rate mortgage loans taken out by Danish private customers (sector 1430, DK, DKK) for each month, categorized by length of interest rate fixing. The “Other” category includes loan types with interest rate fixings that are not directly shown, such as F2, F4, F6, F7, F8, F9, and F10 loans. The “Short” category represents loan types with interest rate fixing periods of 3 or 6 months, where the interest rate is linked to either the CIBOR or CITA rate.