Analysis of Bill on Refinancing of Adjustable Rate Mortgages
We have compared the Danish bill on solving refinancing risk for adjustable rate mortgages to previous bills and analysed the changes.
The Danish bill of 28 November 2013 to solve the refinancing risk for adjustable rate mortages has changed significantly compared to previous bills. This report analyses the changes compared to the previous bills and concludes that the bill will solve the refinancing problem with very little impact on fixed bonds' characteristics.
The bill, on the other hand, gives no significant reduction of the borrower's interest rate risk. The report discusses the possibilities of involving interest rate risk in the credit rating, which is made in connection with mortgages.