Nykredit’s commitment extended by up to six months

Chairman of the Competition Council Christian Schultz says:

"Nykredit has asked us to reassess the original commitment from 2003, which concerns a cap on administration margins for Nykredit loans. The reassessment of the original commitment requires more analysis, and we expect to reach a final decision no later than September 30, 2017."

"The decision we made today concerns the temporary commitment from 2011, which allowed a slight increase in administration margins in light of, among other things, the financial crisis. We decided to extend the temporary commitment for up to six months, or until we’ve come to a decision on Nykredit's original commitment from 2003."

In 2003, the Competition Council approved the merger between Nykredit and Totalkredit with commitments. Among other things, Nykredit committed to reducing the administration margins on loans for owner-occupied dwellings and holiday homes to 0.5 percent at full mortgaging.

This commitment applies to Nykredit customers, who were covered by the original commitment and who still have a Nykredit mortgage loan. Customers with Totalkredit loans are not covered by the commitment.

The Competition Council's decision means that Nykredit’s temporary commitment is extended until the Competition Council has reassessed Nykredit's original commitment from 2003. However, the extension lasts for a maximum of six months.

In the decision to extend the temporary commitment, the Council has emphasised that external costs in the form of e.g. regulatory requirements for capital are not deemed to have declined since 2011, when the Competition Council last assessed the commitment. The decision gives consideration to borrowers in Nykredit, as did the decision from 2011.