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Which Swedish banks are lowering their mortgage rates?

TT/Becky Waterton
TT/Becky Waterton - [email protected]
Which Swedish banks are lowering their mortgage rates?
Mortgages are slowly getting cheaper in Sweden again. Photo: Oscar Olsson/TT

UPDATED: Many banks in Sweden are starting to lower their interest rates on mortgages again. Which banks are lowering their rates and by how much?

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For most of the banks, rates are only being lowered on fixed-term mortgages. These rates all refer to the listräntor, the rate which the bank lists on its website and offers as a starting point, but most mortgage holders will have negotiated a lower rate, so the average interest rate – which they legally also have to show on their website – is actually lower.

Danske Bank

From November 17th, Danske Bank’s rate for two year fixed-term mortgages dropped by 0.10 percentage points to 5.24 percent, while three, four and five year terms all dropped by 0.20 percentage points, to 4.89, 4.79 and 4.56 percent, respectively.

Rates for six and ten year terms went down by 0.15 percentage points, to 4.61 and 4.52 percent respectively.

Rates on Danske Bank’s one year fixed-term mortgage remained unchanged, as well as its variable rate mortgage, which is technically a three month fixed-term mortgage.

SBAB

At state-owned mortgage providers SBAB, all mortgage rates were lowered from December 1st, by between 0.1 and 0.15 percentage points.

After the drop, rates for a three month fixed term were 5.12 percent, a one year term was 5.17 percent, three years 4.58 percent and five years 4.41 percent.

Handelsbanken

Handelsbanken on December 15th cut the mortgage rates for its fixed-term mortgages by up to 0.25 percentage units, with fixed-term mortgages with term periods of between eight and ten years seeing the largest drop.

Landshypotek

Landshypotek Bank, one of Sweden’s top ten largest mortgage providers, cut its mortgage rates on December 6th for fixed-rate mortgages by between 0.25 and 0.40 percentage points, while variable rate mortgages remain unchanged.

Two-year variable rate mortgages saw the largest drop, 0.40 percentage points, with a new rate of 4.49 percent.

One year terms dropped by 0.25 percentage points to 5.09 percent, while three and four year terms were lowered by 0.35 percentage points to 4.32 and 4.17 percent respectively. Five year terms went down by 0.30 percentage points to 4.11 percent.

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Nordea

Nordea in mid-December lowered the rate on its one-to-eight-year fixed-rate mortgages by 0.20 percent, leaving its variable rate unchanged at 5.99 percent. Its mortgage rates at the time of writing now stand at 5.04 percent for one year and 4.29 percent for eight years.

Skandia

Pension company Skandia, which also offers mortgages, lowered its rates for all fixed-rate mortgages from December 7th, leaving variable rate mortgages unchanged.

Three year fixed rates were lowered the most, dropping by 0.30 percentage points to 5.14 percent. Five year terms dropped by 0.25 percentage points to 4.95 percent, while one and two year terms dropped by 0.20 percentage points to 5.69 and 5.29 percent respectively.

Sparbanken Syd

From November 30th, Sparbanken Syd lowered rates on two to five year fixed-term mortgages.

The largest drop was for five year fixed-rate mortgages, which decreased by 0.30 percentage points to 4.51 percent. One year rates decreased by 0.20 percentage points to 4.93 percent, and three and four year rates decreased by 0.15 percentage points to 4.73 and 4.60 percent, respectively.

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Ålandsbanken

Ålandsbanken, which uses Borgo, the same loan provider as ICA Bank, Ikano Bank, Söderberg & Partners and Sparbanken Syd, dropped rates on all fixed rate mortgages by 0.10 percentage points at the end of November.

Its lowest rate was for seven and ten year fixed rate mortgages, which both stood at 4.50 percent, while 1 year mortgages were highest at 5.35 percent.

Other banks and mortgage providers

At the time of writing, Swedbank, SEB, ICA Banken, Ikano Bank, Söderberg & Partners, Hypoteket, Länsförsäkringar and Stabelo had not announced plans to lower rates on any of their mortgages.

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