Brexit shock leads to record negative Danish mortgage rates

Copenhagen

DANISH households are being paid to borrow, with rates on floating-rate loans sinking to the lowest on record, as Britain's decision to quit the European Union feeds a capital flight into markets considered safe.

Since the world woke up to the reality of Britain having voted itself out of the EU last week, investors have mostly piled into assets sold out of Japan and Switzerland. But AAA-rated Denmark, which pegs its krone to the euro, has also felt the weight of a sudden capital influx, sending its 10-year government yield close to zero and driving down rates on home loans.