Should an Englishman Determine How to Make Loans for Your Home? This can be the case if the Danish mortgage loan system is not successful.
Last week, members of the new European Commission were named. Margrethe Vestager became Commissioner for Competition – sorry. Unfortunately, because she did not become Commissioner for the financial market regulation – and that would have been very good for the Danish homeowners.
The Commissioner from hell
Instead, we got the worst possible Commissioner if we wanted to maintain Danish mortgage loan as we know it. It became the conservative Briton Jonathan Hill who was responsible for regulating financial markets. It was Juncker’s gift to British Prime Minister David Cameron, but for the Danes it is a pure gift of hatred.
The British, in particular, have been very busy protecting the financial markets in London. The bond market in London competes hard with the Danish bond market, which is largely based on Danish mortgage loan. So it’s a classic game about national interests. By weakening Danish mortgage loan, the British strengthen London as a European financial center.
Do not believe that the new Commissioner, known as conservative hardliner, will hesitate when he is given the opportunity to make new demands on Danish mortgage loan. And it’s just a matter of time, because this fight is not over. We can therefore, with good reason, regard Jonathan Hill as the Danish reactants’ main enemy No. 1.
Denmark must fight for the right to good mortgage loan
Already, while reading this, the UK Finance Lobby is underway. They see the possibility of beating some nails in Danish realkredits lying coffin. Therefore, the Danish officials and interest organizations must work hard to put themselves at the forefront of meeting with Commissioner Hill. They must set an agenda that keeps Danish mortgage loan free of the capital and liquidity requirements that threaten to remove the basis for securing Danish homeowners low interest rates in the future.
We cannot afford to compromise. Danish mortgage loan must have a special status – the system cannot be equated with the loans. The mortgage system is a healthy competing alternative to the loans, and therefore it is so important to maintain. Without that, there is really no cheap alternative to borrowing money from the loans.
Danish mortgage loan as a model
It is actually a little strange that the Danish system has not been copied by other countries in Europe. It can almost only be because the established financial sector has as much power as it has. It is certainly not the interests of consumers that are taken into account.
Does the Danish political system have the power it requires to protect Danish mortgage loan? Do the Danish politicians have the personal strength to stand firm? We will see that in the coming years.
Perhaps it will be one of Margrethe Vestager’s most important lobbying tasks in the new commission to hold meetings with his colleague Jonathan Hill. It is about protecting and preserving the world’s perhaps best home mortgage system. Ideally, we should export the good Danish mortgage loan system to the rest of Europe and the World.
But this project has not just become easier with Juncker’s new commission.