SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Silence from mortgage lenders after the interest rate cut

The Swedish Central Bank's interest rate cut has been met with silence from leading mortgage banks. Neither Swedbank nor Handelsbanken – the two largest – have adjusted down mortgage interest rates. On the other hand, Swedbank was quick to lower the interest rate on savings accounts.

» Updated: 20 August 2024, 16:42

» Published: 20 August 2024

Silence from mortgage lenders after the interest rate cut
Photo: Jessica Gow/TT

When the Swedish Central Bank lowered the interest rate in May, the major banks immediately followed. After Tuesday's interest rate cut, the situation is different – at least for now.

By 4 pm, none of the largest mortgage banks had reacted to the interest rate cut. TT has been in contact with the banks to get a statement on how they intend to act.

"When we have further changes to our interest rates, we will communicate them," is the message from Swedbank's press department.

One that lowers

Some medium-sized mortgage banks have, however, managed to react. Danske Bank has lowered its variable mortgage interest rate by 0.20 percentage points and Nordea by 0.10 percentage points.

Nordea was one of several mortgage banks – including Swedbank – that chose to lower their variable mortgage interest rates last week before Tuesday's expected cut from the Swedish Central Bank.

Christina Sahlberg, savings economist at the comparison site Compricer, believes that the banks will make further cuts:

In May, they made an average cut of 0.23 percentage points. In a week, I think we will have seen a cut in average interest rates.

The fact that today's message was so expected made many banks dare to go ahead of the Swedish Central Bank, she notes, and perhaps thereby get extra media attention. For the banks' part, there is also reason to "divide" the cut into two parts.

It is very expensive for the major banks to lower the interest rate, so every day they can wait, they earn money, because we have such enormous loans with them.

Worse terms

One interest rate change was announced by Swedbank shortly after the Swedish Central Bank's message, namely that their interest rates will be lowered by 0.25 percentage points on savings accounts and 0.10 percentage points on private accounts.

The fact that the banks have previously been quick to raise loan interest rates but slow to raise savings interest rates has been met with criticism. Now, the consumer organization Sveriges Konsumenter wants to see a reversed pattern.

"Now we want the mortgage interest rates to be lowered quickly – and the savings interest rate to remain. Consumers have paid the banks' excessive profits for far too long," says Johanna Hållén, Secretary-General of Sveriges Konsumenter, in a press release.

Christina Sahlberg advises households with mortgages to take the opportunity and play the banks against each other.

It's always good to pit them against each other, but when it's moving this much, it's a good opportunity. The banks are on their toes and they don't want to lose customers.

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

More news

He became "PG" to the entire Swedish people
3 MIN READ

He became "PG" to the entire Swedish people

PG Gyllenhammar has died: "meant a lot"
1 MIN READ

PG Gyllenhammar has died: "meant a lot"

No Nvidia boost on Wall Street
1 MIN READ

No Nvidia boost on Wall Street

Temu's owner shows its hand
1 MIN READ

Temu's owner shows its hand

Nvidia rises in pre-trading on Wall Street
1 MIN READ

Nvidia rises in pre-trading on Wall Street

Northvolt Applies for Reconstruction
1 MIN READ

Northvolt Applies for Reconstruction

Northvolt: Negotiations are still ongoing
3 MIN READ

Northvolt: Negotiations are still ongoing

Higher Compensation for Job Interviews in Another Location
1 MIN READ

Higher Compensation for Job Interviews in Another Location

Vehicle Giant Warns of Challenges in 2025
1 MIN READ

Vehicle Giant Warns of Challenges in 2025

Unchanged interest rate in Turkey
1 MIN READ

Unchanged interest rate in Turkey

Trump anxiety in the EU over US tariffs
3 MIN READ

Trump anxiety in the EU over US tariffs

Weak demand for scrapping premium
1 MIN READ

Weak demand for scrapping premium

E-fuel company takes in half a billion
1 MIN READ

E-fuel company takes in half a billion

New Report Boost for AI Giant Nvidia's Share
2 MIN READ

New Report Boost for AI Giant Nvidia's Share

Stockholm Stock Exchange Turned Upwards
1 MIN READ

Stockholm Stock Exchange Turned Upwards

Bitcoin closer to the dream limit
1 MIN READ

Bitcoin closer to the dream limit

Higher fee to stop burning of plastic
2 MIN READ

Higher fee to stop burning of plastic

USA wants to force Google to sell Chrome
2 MIN READ

USA wants to force Google to sell Chrome

New method reveals pension fraud
3 MIN READ

New method reveals pension fraud

Most Minus Signs on Asian Stock Exchanges
1 MIN READ

Most Minus Signs on Asian Stock Exchanges