COPENHAGEN (Reuters) - Danish mortgage banks will have a harder time pushing up fees after lawmakers agreed on Thursday new rules that make it cheaper for homeowners to switch to another bank when the fees go up. The sector, which includes units of Danske Bank, Nordea, Nykredit and Jyske Bank, has been criticized for recent hikes in fees, leaving homeowners with no other choice than to accept the increase or choose the costly option of switching to another mortgage bank. Banks’ income from fees on mortgage loans totaled 10.4 billion Danish crowns ($1.5 billion) in the first six months of 2016, according to the country’s FSA financial regulator. But new rules agreed by a broad range of parties in the Danish parliament on Thursday order mortgage banks to notify and explain price increases six months in advance and let homeowners switch to another mortgage bank at half the normal price. Furthermore, the FSA has been given the authority to cancel fee increases if the explanation from the mortgage bank is not sufficiently detailed. Reporting by Erik Matzen; Additional reporting by Jacob Gronholt-Pedersen; Editing by Teis Jensen and Mark Potter
The Danish parliament has agreed new rules that make it cheaper for homeowners to switch banks if mortgage fees increase. Banks have been criticised recently for raising fees, which homeowners must accept or make a costly move to another mortgage bank. The new rules require mortgage banks to give six months prior notice and an explanation of price increases, and allow homeowners to switch to another mortgage bank at half the normal prices. In addition, the Financial Supervisory Authority will be able to cancel fee increases if explanations are inadequate.