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Business

Thousands of homeowners cheating themselves, bank says

admin
July 19th, 2013


This article is more than 11 years old.

Billions of kroner in potential savings being lost by homeowners not refinancing

Thousands of homeowners with mortgage rates locked in at five, six or even seven percent are cheating themselves, Nordea Kredit warns. According to Nordea, over 100,000 homeowners could refinance their loans at a lower rate.

"It is incomprehensible that there are so many homeowners who choose to keep their old high-interest loans instead of converting to a new, cheaper one," Lise Nytoft Bergman from Nordea Kredit told the financial daily Børsen.

There are fixed rate loans available for as low as 3 and 3.5 percent, but time is running out to cash in on the low rates.

"There are only ten business days remaining for homeowners to minimise their costs," said Bergman.

There is much more than pocket change at stake. Nearly 65 billion kroner worth of mortgages remain on the market at higher rates that could be converted. 


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

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At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

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Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”