More trade for state lender SBAB

State-owned mortgage leder SBAB has seen its market share jump since it cut the interest on its loans in April.

The company, which says it is mandated by the government to “contribute to competition in the residential mortgage market”, saw its market share in May rise to 8.6 percent, compared to 8.4 percent in April. The company says that this is the largest increase in its history.

SBAB announced in May that it would abolish its higher interests on the last part of its mortgages. Most Swedish banks currently charge around two percent more in interest for the last 25 percent of the value of a house or apartment.

Most of the new business coming to SBAB has been from people moving existing mortgages from other lenders, says the company.

“We’re happy about the response and the stream of new customers,” said Eva Cederbalk, SBAB’s CEO, in a statement.