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Rate rises to hit homeowners

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17:49 CEST+02:00
Many Swedes with short-term fixed-rate mortgages will face higher bills from now on, after state-owned mortgage lender SBAB and Nordic bank Nordea both raised rates. But mortgages fixed for three years or more will become cheaper, SBAB said.

After the changes, SBAB’s three-month fixed rate mortgages will attract a standard interest rate of 2.25 percent, a rise of 0.07 points. Two-year fixed-rate deals are unchanged at 2.9 percent.

Interest rates on five-year fixed-rate mortgages at SBAB are being reduced by 0.07 points to 3.95 percent. Ten-year fixed-rate deals are being reduced by 0.16 points to 4.68 percent.

The changes by SBAB also affect customers of its partners - ICA Banken, Ikano Bank, Nordnet Bank, Salus Ansvar and Bank 2.

Nordea announced on Wednesday that it would also raise rates on short term fixed rates, effective from Thursday. Their 3-month rate would rise by 0.03 percentage points, while their one-year fixed rate would rise by 0.05 percentage points. The new three-month rate will therefore be 2.18, while the new one-year rate will be 2.30, the bank said in a statement.

Nordea’s 5-year fixed rate mortgage will fall by 0.1 percentage points to 3.89 percent. The one-year fixed-rate will fall by 0.1 points to 4.59 percent. Rates on mortgages fixed for between two and four years are unchanged.

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