FI can skip mandatory mortgage requirements – Swedish Dagbladet

FI can skip mandatory mortgage requirements – Swedish Dagbladet

If the banks’ requirements is hard enough maybe not mandatory rules are needed, according to the Director General Martin Andersson.

– It is positive that banks as well as we want to increase the buffers in the households. Bankers Association’ve signaled that they want to take this puck and we have had a dialogue in the fall, said Martin Andersson.

Bankers Association said on Tuesday that it intends to require repayment of the loan over 50 percent of the value of the home, but not how long it will take to pay off the loan.

FI is currently and investigate if needed mandatory amortization requirements, and according to Andersson come a long way in this work.

– Then we’ll see if we launch it or not. About Bankers Association comes up with a proposal that covers what we want to do there is no reason for us to do the same. But it is too early to determine.

Today pays Swede average of their mortgages in about 140 years, and this trend needs to be reversed, according to Andersson.

Households with a lower LTV is significantly less vulnerable to boprisfall, but to reduce debt will take time so do not hit the Swedish economy, he believes.

– We have an economy that is very much driven by consumption and it is also a reason to proceed cautiously.

FI sketches that amortization requirements shall apply to new loans, not existing.

– What we think is disturbing is the rate of growth in debt, not the level, says Andersson.

It is easier to change the rules in a low interest rate environment, and it also applies to interest deductions.

– Lowering interest deductions is a measure that would be good to start taking hold of now that we have low interest rates . I think it would be good to look also at the issue, said Martin Andersson.

Minister for Financial Per Bo (MP) greets through his press secretary that he is pleased that the industry takes the initiative to create a sound repayment culture in Sweden, but have no comment on whether the government is willing to revise the interest deductions.

Finance Magdalena Andersson (S) has previously said that she believes we should revise the rules for mortgage cap in parallel with the harder amortization requirements, but FI has According to Martin Andersson not viewed any amended rules for mortgage ceiling.