Denmark mortgage bank warns of 'out of control' housing market

Copenhagen

DENMARK'S biggest mortgage bank is warning there's a risk the housing market may get "out of control", especially around cities, as long-term negative interest rates make borrowers complacent.

"To be concrete, there is a danger that Danes go blind to the risk of rates ever rising again," said Tore Stramer, chief analyst at Nykredit in Copenhagen. "That raises the risk of a major housing price decline, when rates at some point or other start to rise again."