Handelsbanken, one of the two largest lenders on the Swedish mortgage market, is lowering the interest rate on floating-rate mortgages with a three-month term by 0.25 percentage points.
The announcement comes after Skandia lowered its floating mortgage rate by 0.05 percentage points on Thursday.
The reductions come ahead of next week's interest rate decision from the Swedish Central Bank, where a 0.25 percentage point cut in the benchmark rate is expected.