Interest rate adjustment

For borrowers with adjustable-rate mortgages in euro

Adjustable-rate mortgages (ARMs) in euro granted against a mortgage on a property located outside Denmark are subject to frequent interest rate adjustments during the loan term.

Interest rate adjustment

Interest rate adjustment means that the interest rate of ARMs in euro is adjusted vis-à-vis market rates at fixed intervals. If your ARM is funded by 1-year bonds, the interest rate of your loan will be adjusted every year. ARMs funded by 2-year bonds are adjusted every second year, and ARMs funded by 3-year bonds every third year.

Choosing a new ARM on interest rate adjustment

Customers of Nykredit International Lending may choose an ARM in euro funded by 1-year, 2-year or 3-year bonds in connection with the interest rate adjustment. Note that the notice for changing your loan profile before interest rate adjustment has been changed from 1 month to 2 months.

  • If you choose an ARM with 1-year funding, you will get the lowest possible mortgage payments.
  • If you choose an ARM with 3-year funding, your mortgage payments will be slightly higher but in return you will obtain security for a longer period.
More information about choosing an ARM

Fixed-price agreement

A fixed-price agreement on interest rate adjustment is an agreement to fix the price of an ARM in euro in connection with interest rate adjustment. The agreement is entered into between you and Nykredit.

Fixed-price agreements can be used to fix the future mortgage payments on your ARM in euro before refinancing.


Generally, Nykredit International Lending does not recommend that ARMs in euro secured on a property located outside Denmark are remortgaged into another type of loan. The reason is that transaction costs such as land registration costs generally exceed the benefit of refinancing.

Professional advice

If you have questions in connection with a forthcoming interest rate adjustment of an ARM in euro, please do not hesitate to contact us. We will advise you on what is best for you.