Mortgage debt reduced in almost all minicipalities

In the past year, homeowners in all municipalities have reduced their mortgage debt, with the exception of Gentofte and Gribskov municipalities. Danish homeowners had mortgage debt of kr. 1,786 billion (nominal) by the end of February, which is 2.1 per cent (kr. 38 billion) less than a year ago.

Large municipal differences in the past year's change in homeowners' mortgage debt
Note: Annual percentage change (February 2023) in nominal value of mortgage lending with security in owner-occupied homes and holiday homes to Danish households.

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Big differences across the country

Overall, there is a greater percentage reduction in mortgage debt west of the Great Belt. The counties in Jutland have reduced their mortgage debt between 2.4 per cent and 3.8 per cent, lowest in East Jutland. It looks different in North Zealand, where the home owners have reduced the mortgage debt by 0.6 per cent. The largest percentage reduction in mortgage debt at municipal level is seen in Læsø and Tønder municipality, where the debt has been reduced by more than 6 per cent the past year. Conversely, the debt has increased slightly in Gentofte and Gribskov municipality by 0.1 per cent.

Difference in loan activity and conversions

The rising interest rates have in the past year led to falling activity on the housing market and limited the
extent of new mortgage debt. At the same time, rising interest rates have given many homeowners with fixed rate loans the opportunity to reduce their remaining debt by converting the loan.

Only 51 per cent of homeowners’ mortgage debt in Copenhagen and North Zealand had fixed interest in
February 2022. Therefore, the homeowners in Copenhagen and North Zealand have not had the same opportunity to reduce the debt during conversions as in the rest of the country, where 58 per cent of the mortgage debt had fixed interest rate.

Ordinary installments contribute to lower debt

The homeowners have reduced their mortgage debt by kr. 41 billion via ongoing ordinary installments. Due to the difference in the age of the loans and the repayment profile, there is a significant difference in how much is repaid across the country. The installment percentage for the past year is for example 2.5 per cent in Jutland and 1.8 per cent in Copenhagen and North Zealand.