Long-term fixed-rate mortgage contracts protect households against interest rate risk, yet most countries have … fixation length tracks the life-cycle decline of credit risk in the mortgage market: the loan-to-value (LTV) ratio decreases … using shorter-term contracts. To quantify demand for long-term contracts, I develop a life-cycle model of optimal mortgage …

Rising mortgage rates have led to one in five Danish fixed-rate mortgages to be refinanced during the first three … quarters of 2022. The unique Danish match-funding principle has allowed fixed rate mortgage borrowers to buy back their … mortgage and bank debt, while 38 per cent was cashed out. The cash-out share is higher for borrowers with lower levels of …