Riksbank: A principal requirement is urgent – Göteborgs-Posten

Repayment requirements on mortgages is getting closer. Horror scenario if you do not get to the requirement of a financial crisis. But major requirements may make it even harder for young people to enter the market.

Last year, seven out of 10 new mortgage borrowers to repay their loans. There are too few, like the Riksbank, the Swedish National Debt Office and Finansinspektionen that on Monday signed the DN’s opinion piece that an amortization requirement is urgent. Otherwise, writes the authorities, the Swedes mountain of debt lead to a financial crisis. Lars Calmfors, Professor of International Economics at Stockholm University, shares debater ‘concerns.

– Property prices will increase and increase in household indebtedness relative to income. There is a risk that the development will create significant problems in the future, but such a one never knows before. Just because it is especially important to stop this while time there, he says.

The effect of amortization requirements is believed to be that more is in their wallets, causing house prices lowered and the debt decreases. The idea was to amortization requirements would have been introduced already in the autumn. But in April showed that FSA does not have a legal support for introducing this type of regulation. The decision must be made politically.

– What I know is all the parties agreed to introduce this. Best of all would be if it is not delayed beyond the year-end, says Lars Calmfors.

Kravets design is not clear. This has been speculated that the requirement should only apply to new loans and exempting newly built homes, the same requirements.

Michael Sagittarius, mortgage manager at Nordea, says Nordea and other banks have already tightened the requirements.

– Since some years we have tightened up the rules voluntarily. All mortgages by at least 70 per cent loan to value will be amortized to 100 percent, he said.

2010 introduced today’s mortgage cap, , which means that the maximum may borrow 85 percent of the residential value.

– Do not parents who can step in with money can be difficult for a young person to get into the housing market, says Lars Calmfors which is backed by the Tenant The president Ulrika Blomqvist:

– It is good to amortize and that more will. But to put a general requirement would mean a further threshold – not just for the young but also for newly separated and the elderly, she says.

But Michael Sagittarius Nordea do not think young will be affected as much.

– Most young people who buy a condominium in day borrowing to 85 percent of the value, and then you have to repay 2 percent of the value every year. Then you are already used to amortize. We test our customers high interest and amortization. Handles not the calculation you get no mortgage. As it is already, he says.