The coming years will then show who have successfully advised their customers about the consequences of interest-rate changes or changes in the customers' ability to meet payments - and who have merely been sales men. The basic principles of mortgage credit in Denmark have been retained in the many adjustments to mortgage-credit legislation over the years.
The mortgage-credit institutes are intermediaries providing loans on the basis of bonds. The credit risk is “pooled” so that the bondholders are not dependent on one single borrower's ability to meet payments. However, the interest-rate risk still rests on the borrowers and bondholders, respectively, not on the mortgage-credit institute.