Danske Bank raises variable mortgage rates but cuts fixed rates for two- to 10-year terms

The announcement follows interest rate adjustments announced by state-owned SBAB on Wednesday and a long series of increases in variable mortgage rates by mortgage banks after the Swedish Central Bank raised the key interest rate last week.

“Short-term market interest rates have risen after the Swedish Central Bank raised the key interest rate, which means we are raising rates on variable mortgages. At the same time, we are raising rates on savings accounts so that customers with savings can also benefit from the higher interest rates. Longer-term market interest rates have fallen, however, so we are lowering rates on mortgages with fixed terms of two to 10 years,” says Nicklas Ilebrand, head of retail markets at Danske Bank Sweden, in a comment.