In the wake of Riksbank’s lowering of the interest rate minus the bank after bank lowered mortgage rates. Although rates have fallen overall, it is mainly loans with longer periods that have fallen more than floating rates.
Danske Bank last drop means that the company now has the lowest list prices for loans with periods up to five years. Periods of between one and three years gives an interest rate of 1.75 percent, while five years gives 2.15 percent.
Sleep economist Christina Söderberg by comparison service Compricer found that Danske Bank’s substantial reduction with 50 points on three-year loans means that these are now at a record low.
– In 2009, the three-month interest rates down lower than current interest rates – but the three-year rate never went below 3 per cent then, she says.
The maximum reduction the past week, second Danske Bank, SEB and Länsförsäkringar for both gone down by 20 basis points each to 1.92 and 1.91 percent.
The listed interest rates says certainly not what the real interest rate will be. But one reason why the banks have adjusted down long-term interest rates so much could be that they want to mortgage customers will fix the interest rate. The chief executive Ulrica Proud Kirkegaard said, for example, recently SvD Business to advise their clients not to have all mortgages with three month duration, but instead spread the risks by having different fixed-rate periods.
– Yes, banks want us binds our loans more than we do today. It will be easier for them to plan and often we pay a little more on fixed-rate loans than on moving, says Christina Soderberg at Compricer.
She also thinks that it is a clear sign of that banks believe that the Riksbank will leave the interest rate low for a long time to come.
The personal financial analyst Ylva Yngveson mean that Danske Bank may have read of the market, what borrowers bargained to, and want to create a market advantage by going out with such a large reduction.
– To have customers with fixed loans are so clearly positive for a bank’s financial planning, she says.
Historical have it almost always paid off with variable mortgage rates. But the starting position is a little different today with longer periods at or near record lows. For mortgage holders who believe that interest rates are likely to rise a lot in the long term, long periods be a smart choice in comparison to shorter. At the same time the current uncertainty in the global economy there is reason to be cautious.
– For those with large variable loans or who are about to buy new, a mixture between three-month, three- or five-year and eight- or ten-year bond be an option. In any case, Danske Bank’s cut is a good starting point to be able to bargain in other banks, says Ylva Yngveson.
Anyone who chooses various durations should however note that there can mean a lock-in effect if you would like to switch lenders, because it is not certain that it is possible to move only a portion of a loan.
– Do not tie the interest rates beyond what you plan to stay in your current residence. Are you moving and have a fixed-rate loan, you pay interest compensation. It is sad and something you will not have variable interest rates, says the private financial expert Annika Creutzer.
But there are other reasons to commit mortgage rate.
– I think you should see fixed loans as an insurance policy. Bind the interest rate you get an assurance that the interest rate will not be higher. And right now the insurance premium is very low.
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