Introducing FSA (FI) content of a regulation that will force the country’s banks to report the average mortgage interest rates that they offer their customers. It is in effect a revolution for millions of mortgage borrowers who often have been groping in the dark before interest negotiations with their bank.
– More openness on mortgage rates FSA has talked about for years. Now we have seen that the banking industry is not alone able to be more open, and then we see no alternative but to force them says to SvD Business Malin Omberg is Area Director for Financial Supervision Consumer Protection.
In practice overturned banks’ own systems with so-called drop-term interest rates, a report revealed that misleading, including Svenska Dagbladet Enterprise’s interest map.
The warning that banks must pull themselves clarified later in May when Martin Andersson, Head of FI, described the banks bolånegivning “as a market in Marrakech where you do not have a clue about the price that applies.”
Criticism drop interest rates are that they can deceive customers into believing that the mortgage rate will be higher than it actually is.
– FSA do not think it is reasonable that banks can not provide a better information before the customer should sit down and negotiate, says Malin Omberg, who had hoped that the banks themselves would have managed to tackle the issue.
FSA notes that for most is home purchase loan and the biggest banking transaction of his life. “Despite the lack of day basic information about what a loan will cost because the banks do not declare the interest they actually offer their clients.”
Now the FSA to tough new rules to be introduced from March 1, 2015 FI suggests banks to publish the average rate that the customers offered the last month.
“Such an average effective interest rate will be presented and updated regularly for each interest period. This information should be published on banks’ websites,” reads the announcement from FI.
So far only Skandia who voluntarily choose to report the average mortgage rate every month. Skandia bank boss Oyvind Thomassen thought at the launch of the average rate for the ten days ago, the other banks would quickly follow.
– Ultimately the big banks never resist the need for more transparency of the real mortgage rates, said Oyvind Thomassen SvD Enterprise.
But the big the banks would rather not follow. As late as Monday this week informed Swedbank failure to observe Skandia example. “The difference between us and Skandia’s customer base. Presenting average interest rates on a national level for our 4.1 million customers may be misleading because all have completely different conditions,” read the announcement of Swedbank customers who wanted to know if the average interest rate.
But the husbandry want FI thus no longer accept.
– We do not know why this has been so hard inside the banks, but it’s actually not okay to interest rate depends on the customer’s ability to negotiate. That’s often the biggest deal in the customer’s life and especially first-time buyers have probably been able to get jammed, says Malin Omberg.
The banks have now just over a month in which to submit comments on the regulation before it is determined by the FSA.
According to FI, banks also have to tell the customer what affects the interest rate they offer. It may be a matter of the client’s income, size of loan or lending.
– You should say what factors influence, so that the customer can find out why they offered a certain interest rate, says Malin Omberg.
In large bank Nordea says chief economist Annika Winsth to FI’s regulations will not totally unexpected.
– I also believe that we can expect that the FSA will have even more focus on household indebtedness in the future, says she said.
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