December 22 2017
On November 13 2017 the Financial Supervisory Authority agreed on more stringent amortisation requirements for home mortgages. The debt burden on Swedish households has long been a concern for regulators, and the authority is now taking an activist approach in an effort to mitigate the risk of a widespread crisis in case of a downturn in the housing market. The decision, which has been approved by the government, means that borrowers of new loans, where the debt would exceed 4.5 times their gross income, will amortise at least 1% of their debts in addition to the previously existing requirements.
The new rules are proposed to enter into force on March 1 2018.
For further information on this topic please contact Sara Göthlin at Advokatfirman Törngren Magnell KB by telephone (+46 8 400 283 00) or email (firstname.lastname@example.org). The Törngren Magnell website can be accessed at www.torngrenmagnell.com.
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