Company Announcement no 57 2016 – Nordea Kredit changes administration and reserve fees

Nordea Kredit raises its administration and reserve fees effective from 1
October 2016.

There is a political decision that Danish mortgage institutions must meet
requirements for a new debt buffer. The new legislation comes into force in mid
-June this year and when fully phased in, Nordea Kredit will have to tie up DKK
7.7bn to meet requirements.

“Because of the new legislation Nordea Kredit will have to keep more capital in
order to be able to issue mortgage loans to its customers. This makes it more
expensive to offer mortgages, and therefore we adjust prices. For the individual
customer these changes mean that the cost of a loan increases by between DKK 30
and DKK 228 per month after tax for a loan of DKK 1m calculated at a loan to
value ratio (LTV) of 80%,” says Torben Laustsen, Deputy Head of Banking Denmark
at Nordea.

Like today, fixed-rate mortgages will have the lowest administration and reserve
fees, while interest-only loans with adjustable rates have higher fees. The
administration and reserve fees reflect the risk and the costs of the different
loan types. The increase also follows the authorities’ wish that more homeowners
amortise their loans and that more homeowners choose fixed rates or loans with
less frequent refinancing.

All affected customers will receive a letter with individual information
concerning their loans, and general information is available at
www.nordea.dk/realkredit.

Administration and reserve fees on new loans are shown in the table below.

Discounts on remortgaging 2016

In addition, affected customers are offered a discount of DKK 6,000 on their
remortgaging costs if they switch to another type of loan with Nordea Kredit
before the end of 2016.

More information

Questions may be directed to Martin Kjærsgaard Nielsen, Chief Press Officer, tel
+45 33 33 20 20.