This has created a refinancing risk, as 30-year mortgage loans are financed by short-term bonds, often with maturities of only 1 year. Secondly, the option to defer amortisation has made it possible for borrowers to borrow more with an unchanged monthly payment. This has pushed up house prices and increased the vulnerability of borrowers and mortgage banks.
Thirdly, the requirement to pledge top-up collateral for covered bonds if house prices fall has given mortgage banks an extra obligation. The rating agencies also contribute to this requirement. We have previously drawn attention to these factors and encouraged you to find solutions. I appreciate that you have put on your thinking caps.