SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Ban banks' list rates on mortgages

The Social Democrats want to increase the pressure on the banks to lower their mortgage rates. Among other things, they want to ban the banks' so-called list rates on home loans.

» Published: October 30 2024

Ban banks' list rates on mortgages
Photo: Jonas Ekströmer/TT

Today, the banks are trying to make it unnecessarily complicated for households to understand why they are getting a certain interest rate, says Mikael Damberg, economic policy spokesperson for the Social Democrats.

This would put customers in a completely different negotiating situation, he says about the proposal.

The list rate is the interest rate that banks market, but in practice, it often lies far above what the average customer actually pays, since many negotiate a lower rate.

For the bank customer, it is often difficult to understand how the list rate is actually calculated and how good a discount they may have received. If banks instead work from average rates, it will be clearer for the customer, according to the Social Democrats.

Earlier this fall, the Swedish Consumers' Association and the Swedish Homeowners' Association also demanded that list rates be prohibited. Their argument was that the only purpose of list rates is to make customers believe they have received a good discount. They referred to the fact that constant sales are prohibited in retail and that the same should apply to banks.

The Social Democrats also want to make greater use of state-owned SBAB to put pressure on the banking market. For example, by giving the bank the opportunity to provide payroll accounts, which would increase competition on the banking market, believes the Social Democrats.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Support Hotline Launched for Businesses Impacted by Northvolt's Bankruptcy

Support Hotline Launched for Businesses Impacted by Northvolt's Bankruptcy

Union Rejection Puts Swedish Industrial Wage Talks at Risk

Union Rejection Puts Swedish Industrial Wage Talks at Risk

Nike Shares Drop 8.1% Amid Sales Concerns on NYSE

Nike Shares Drop 8.1% Amid Sales Concerns on NYSE

Trump and Bondi Warn Tesla Vandals of Severe Prison Sentences

Trump and Bondi Warn Tesla Vandals of Severe Prison Sentences

Snus Delivery Strike Looms as Union Holds Firm on Notice

Snus Delivery Strike Looms as Union Holds Firm on Notice

EU Investigates Star Stable for Allegedly Deceiving Kids Out of Money

EU Investigates Star Stable for Allegedly Deceiving Kids Out of Money

Russia Holds Steady on Interest Rate Amid High Inflation Concerns

Russia Holds Steady on Interest Rate Amid High Inflation Concerns

Social Democrats Criticize Increased ROT Deduction as Ineffective

Social Democrats Criticize Increased ROT Deduction as Ineffective

Sweden Unveils Updated Food Strategy to Boost Domestic Production

Sweden Unveils Updated Food Strategy to Boost Domestic Production

Tele2 Gains Amid Stockholm Stock Exchange Downturn

Tele2 Gains Amid Stockholm Stock Exchange Downturn

Germany's Major Loans Drive Up Interest Rates Across Europe

Germany's Major Loans Drive Up Interest Rates Across Europe

Asian Markets Diverge Amid Fed Signals and Trade Uncertainty

Asian Markets Diverge Amid Fed Signals and Trade Uncertainty

Heathrow Closure Disrupts Travel for Hundreds of Thousands After Fire

Heathrow Closure Disrupts Travel for Hundreds of Thousands After Fire

Akelius Foundation and Partners Raise 125 Million Kronor for Gaza Education

Akelius Foundation and Partners Raise 125 Million Kronor for Gaza Education

Navigating Mortgage Decisions Amid Economic Uncertainty

Navigating Mortgage Decisions Amid Economic Uncertainty

Svantesson Urges Shared Responsibility to Tackle Rising Food Prices

Svantesson Urges Shared Responsibility to Tackle Rising Food Prices

Swedish Food Giants Cite External Factors for Price Hikes Amid Tough Competition

Swedish Food Giants Cite External Factors for Price Hikes Amid Tough Competition

Interest Grows in Northvolt Assets Amid Bankruptcy Proceedings

Interest Grows in Northvolt Assets Amid Bankruptcy Proceedings

Tesla Recalls Cybertrucks, Market Dips Amid Fed Rate Hold

Tesla Recalls Cybertrucks, Market Dips Amid Fed Rate Hold

EU Delays Bourbon Tariffs, Seeks Talks with Trump Administration

EU Delays Bourbon Tariffs, Seeks Talks with Trump Administration

Bank of England Holds Interest Rate Steady Amid Inflation Concerns

Bank of England Holds Interest Rate Steady Amid Inflation Concerns

Geely's Profit Soars in 2024 with Strategic Shift and Sales Boost

Geely's Profit Soars in 2024 with Strategic Shift and Sales Boost

Coop Syd Cuts 160 Jobs Amid Ongoing Boycott in Sweden

Coop Syd Cuts 160 Jobs Amid Ongoing Boycott in Sweden

Mercedes CEO Calls for Zero Tariffs to Boost US-EU Trade

Mercedes CEO Calls for Zero Tariffs to Boost US-EU Trade

Switzerland Nears Zero Interest Rate as Central Bank Cuts Again

Switzerland Nears Zero Interest Rate as Central Bank Cuts Again

Swedish Central Bank Holds Steady on Interest Rates Amid Inflation Concerns

Swedish Central Bank Holds Steady on Interest Rates Amid Inflation Concerns

Swedish Central Bank Holds Rates Steady, Ready to Act on Inflation

Swedish Central Bank Holds Rates Steady, Ready to Act on Inflation

Ericsson Gains Amid Stockholm Stock Exchange Dip

Ericsson Gains Amid Stockholm Stock Exchange Dip

Sweden Tackles Rising Food Costs: Government Meets with Industry Leaders

Sweden Tackles Rising Food Costs: Government Meets with Industry Leaders

China Holds Steady on Interest Rates Amid Economic Challenges

China Holds Steady on Interest Rates Amid Economic Challenges

Trump Calls on Fed to Lower Interest Rates Amid Economic Uncertainty

Trump Calls on Fed to Lower Interest Rates Amid Economic Uncertainty

Rising Trend: 1 in 5 Swedes Boycott American Brands

Rising Trend: 1 in 5 Swedes Boycott American Brands

U.S. Stock Markets Surge as Fed Holds Interest Rates Steady

U.S. Stock Markets Surge as Fed Holds Interest Rates Steady

Fed Holds Interest Rates Steady Amid Economic Uncertainty

Fed Holds Interest Rates Steady Amid Economic Uncertainty

Sweden's Finance Minister Pushes for Lower Food Prices Amid Talks

Sweden's Finance Minister Pushes for Lower Food Prices Amid Talks

Sweden's Economy Faces Higher Unemployment Despite Growth Signs

Sweden's Economy Faces Higher Unemployment Despite Growth Signs

Another Major Bank Raises Mortgage Interest Rates

Another Major Bank Raises Mortgage Interest Rates

European Inflation Revised Downward

European Inflation Revised Downward

Stockholm Exchange Sees Slight Gains Amid Mixed European Markets

Stockholm Exchange Sees Slight Gains Amid Mixed European Markets

More and more rush to declare

More and more rush to declare