Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

SBAB: Everyone chooses variable interest rate

Almost all of SBAB's new mortgage customers chose variable interest rates in June. It is better for everyone to choose variable interest rates, says Christina Sahlberg, savings economist at the comparison site Compricer.

» Updated: 04 October 2024, 12:24

» Published: 16 July 2024

SBAB: Everyone chooses variable interest rate
Photo: Fredrik Persson/TT

Almost all of SBAB's new mortgage customers chose a variable interest rate in June.

It's better for everyone to choose a variable interest rate, says Christina Sahlberg, savings economist at the comparison site Compricer.

A full 98 percent of the new customers at mortgage giant SBAB chose a variable interest rate last month.

And only one percent chose to fix the entire loan – and just as many chose a combination of variable and fixed interest rates.

I think customers expect the Swedish Central Bank to lower the interest rate and that it will affect the variable interest rates, says Robert Boije, chief economist at SBAB.

The Swedish Central Bank has previously signaled that there may be up to three more interest rate cuts this year. But SBAB believes there may be four.

Right to choose variable

And according to Christina Sahlberg, savings economist at the comparison site Compricer, it's entirely right to choose a variable interest rate.

It's better for everyone to choose a variable interest rate at present. I'm impressed that the Swedes have control and choose it.

On the other hand, Robert Boije thinks you should only choose a variable interest rate if you have good margins – since it involves risks.

It's about how large your expenses are in relation to your income, but also how much savings capital you have.

So if you have good margins, I think it's pretty calm to choose a variable interest rate.

According to Christina Sahlberg, there are of course risks with having a variable interest rate, but they are very small.

If interest rates were to fall less than expected, because something happens – it will still be good to have a variable rate.

"Don't lock in for too long"

According to SBAB's latest forecast of interest rates and different binding periods – it was cheapest to choose a variable interest rate.

But the bank also saw that it wasn't much more expensive with a fixed interest rate, for four and five years.

However, Christina Sahlberg doesn't think you should lock in the interest rate for too long.

If you're feeling unwell and have anxiety about the mortgage interest rate, you can lock it in for one or two years.

But don't lock in for too long. Then you'll end up paying way too much.

She also warns against choosing a combination of variable and fixed interest rates.

That's super stupid. Then you're stuck with the variable interest rate and can't switch banks because you've fixed half. So it's better to fix everything for a shorter period or not fix at all.

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

More news

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

The Central Bank doubles down - uncertainty after Trump's victory
2 MIN READ

The Central Bank doubles down - uncertainty after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange Rises at Opening
1 MIN READ

Stockholm Stock Exchange Rises at Opening

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected

Inflation Expectations Fall
1 MIN READ

Inflation Expectations Fall

Better than expected for Novo Nordisk
1 MIN READ

Better than expected for Novo Nordisk

No "Trump Effect" on the Stockholm Stock Exchange
1 MIN READ

No "Trump Effect" on the Stockholm Stock Exchange

Stock Market Euphoria as Trump Heads for Victory
2 MIN READ

Stock Market Euphoria as Trump Heads for Victory

Rush on the Tokyo Stock Exchange after the election night
1 MIN READ

Rush on the Tokyo Stock Exchange after the election night