Danes Reduce Repayments on Mortgage Debt: Decline in Ordinary Payments

Recent data reveals a noticeable reduction in the ordinary repayments made by Danish homeowners towards their mortgage debts secured by owner-occupied homes and vacation houses. An average repayment of DKK 10,131 per borrowed million was made during the first half of 2023. This amount marks a decrease of DKK 1,202 compared to the first half of 2022, signifying a decline of 10.6%.

The downward trend in repayment levels, observed since 2020, can be attributed to several factors. Rising interest rates, the prevalence of more recent mortgage debt, and a decrease in debt repayments have collectively contributed to this decline. These factors collectively influence the extent to which homeowners are able to make repayments on their mortgage debt.