The mortgage ceiling by Loan Lender
It has now become clear that Loan Lender decides on a mortgage ceiling of 85%. This was not immediately a surprising decision, but everyone had expected it after the warning.
Previously, this ceiling was at 90% and this means that now another 5% has to be arranged. Either you have to have more cash saved or you have to take more in top loans to get the money needed.
Loan Lender does this in order to curb the rising indebtedness of Swedish households. Mortgages make up the vast majority of the loans that households have.
Young people and mortgages
There has been much criticism that this should create problems for younger people who want to take out a loan to buy a home. The younger ones will find it harder to borrow money simply as the requirements will increase. Because normally it is quite easy to lend money to a mortgage loan when the bank has collateral in the loan.
But now that more money is needed, you either have to have a lot of saved money which few younger people have had the chance to save together or their own finances must be good enough to get a bigger top loan.
All in all, it, therefore, becomes more difficult for younger people to lend money to an accommodation, which can create some problems.
I choose to look a little different on the whole
For me, this is largely a good decision as it will just be harder to borrow. This reduces the risk of getting into a debt trap, which must be positive.
I hope the effect will be that people buy housing that suits them better. Maybe it will be a smaller house in an area that is not as central. This is, of course, better than buying a house in an expensive area that you can hardly afford. We must hope that this will be a good effect.
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