PHOTO: The Danish bank’s move to negative interest mortgages is a world-first. Photo / File
Homeowners looking for a better mortgage may have a lucrative option available if they are willing to brave break fees — and move to Denmark.
Jyske Bank, the third-largest in Denmark, has started to offer 10-year mortgages at a -0.5% rate, so that borrowers pay back less than they loaned.
Borrowers will still make monthly repayments but the outstanding amount will be reduced each month by more than is paid back.
Jyske Bank’s housing economist Mikkel Hoegh said: “We don’t give you money directly in your hand, but every month your debt is reduced by more than the amount you pay.”
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