Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

State could guarantee first-time mortgages

Share this article

State could guarantee first-time mortgages
08:29 CEST+02:00
People who want to buy their first home but have trouble getting a bank loan could soon get a credit guarantee from the state, under plans unveiled by the government.

The new programme would help people who are unattractive to mortgage lenders, for example, young people without permanent jobs but with several casual jobs. The Finance Ministry estimates that 5,000 people a year will apply for the guarantees.

"Everything suggests that this is a win-win situation for everyone," said Housing Minister Mats Odell to Swedish Radio. The programme would be self-financing, with the mortgages costing 0.2-0.4 percent more than normal loans.

The Finance Department proposal would mean the state guaranteeing around 100,000 kronor in interest payments on a 1 million kronor mortgage.

Get notified about breaking news on The Local

Share this article

From our sponsors

Why Europe's top talent still flocks to London

London has always had a certain allure that pulls in entrepreneurs from near and far. As one of the world's most connected cities, a top financial centre and a multicultural melting pot, countless professionals from Europe and beyond are drawn to London like moths to a flame.