Danes generally favor fixed-rate mortgage loans, but variable-rate options are gaining traction in specific areas. Totalkredit’s data reveals that while fixed-rate loans remain the most popular choice nationwide, a significant number of municipalities show a preference for variable-rate loans.

In 19 municipalities, variable-rate loans outnumber fixed-rate loans. These municipalities often share characteristics such as high housing prices and a concentration of high-income earners. This suggests that homeowners in these areas are more willing to take on the risk associated with variable-rate loans due to their greater financial flexibility.

The municipalities with a higher adoption of variable interest rates are mostly located north of Copenhagen (eight municipalities) and in the capital area (five municipalities), while Jutland includes Aarhus, Silkeborg, Skanderborg, Odder, Kolding and Fanø. These loans include F-kort, F3, and F5, which adjust interest rates between every half year and every five years.

Experts advise caution, emphasizing that variable-rate loans carry the risk of interest rate increases. Morten Bruun Pedersen from the consumer council Forbrugerrådet Tænk, warns that homeowners should be prepared for potential financial strain if interest rates rise.

Fixed-rate loans are particularly popular on Ærø and Bornholm, where over 70% of homeowners have opted for this type of loan. Even in Hørsholm, the municipality with the fewest fixed-rate loans, more than one-third of homeowners still prefer the security of a fixed interest rate.

Totalkredit notes a recent shift towards variable-rate loans, with fixed-rate loan offers decreasing from 50% to 45% in the past three months. Despite this trend, experts recommend that homeowners carefully consider their individual financial circumstances and risk tolerance before choosing a loan type. Sune Malthe-Thagaard suggests that personal preference and financial stability should outweigh current trends or the choices of others.