for Banks, the so-called gross mortgage lending fell during the second quarter of the year. The margin was reduced from to 1.46 per cent as at the end of the first quarter to 1.44% at the end of the second quarter, according to the Swedish financial supervisory authority’s (sfsa). The background is a little lower snitträntor vis-à-vis the clients, while the banks ‘ funding costs low, roughly at a standstill.
From the peak in december 2017 at the latest, when the margin is low, at 1.71% has been steadily going down since then.
banks ‘ little bit of shrinking profits, according to their quarterly financial reports. The competition has increased, the smaller players are taking market share and have made a certain amount of downward pressure on prices. Also, the demand for mortgage loans slowed down, competition is increasing even further.
However, historically, the bank’s profitability of mortgage lending continues to be high. For the better part of the 00’s, the average margin is between 0.5% and 1%, according to the Swedish financial supervisory authority, which further encourages customers to make use of for the procedure.
”The high level of the margin of the mortgage loans, shows that there is a greater say for consumers, and at the same time as banks are able to maintain a high level of profitability of the mortgage loans. If consumers are increasingly willing to switch banks, it is likely to contribute to the annual average mortgage interest rates declined”, said FI in a statement.
Read more: Here are the banks, the real rate of interest.
