Nordea is the first bank to issue: raises mortgage rates by up to 0.50 percentage points

Nordea is the first bank to raise mortgage rates after Norges Bank raised its key interest rate on Thursday. The bank raises interest rates on both mortgages and deposits.

Mortgage rates will increase by up to 0.50 percentage points, while deposit rates will increase by up to 0.60 percentage points. Then the best interest rate on deposits would be 1.75 per cent.

– We decided to raise interest rates on mortgages and savings accounts. The background to the increase is Norges Bank’s decision to increase its key rate, as well as developments in the fixed income market, Nordea Norway’s head of retail market Randi Marjamaa says in a press release.

Interest rates are effective as of August 5, 2022.

Translatedly, it indicates that there is strong growth in the Norwegian economy, but it also highlights the high inflation.

The unemployment rate is very low, and many companies report a strong development. At the same time, many feel that prices are rising sharply and that this is eroding their wallets. It is important to realize that this situation can affect people in very different ways. She says we are in close contact with clients who are facing challenges.

On Friday afternoon, Sparebank 1 SR followed and SpareBank 1 SMN followed. “How the Norwegian economy will develop in the future is uncertain,” First Bank wrote in a statement to the stock exchange.

“In light of the Norges Bank raising its key interest rate to ease pressure on the Norwegian economy, and the bank’s borrowing costs continuing to rise, Sparebank 1 SR-Bank is raising the mortgage rate by as much as 0.50 percentage points,” said Roger Lund-Antonsen, the bank’s executive vice president for retail. .

Sparebanken Sogn og Fjordane also sent a message on Friday, raising the interest rate on mortgages and deposits. Sparebanken Møre does the same.

On Thursday, Norges Bank raised its key rate by 0.50 percentage points, and plans to raise the benchmark rate twice in the next time. The key rate is the interest rate on bank deposits with the Bank of Norway, and when the central bank raises the rate, banks often follow suit with increased lending and deposit rates.

Norges Bank estimates the prime rate at around three per cent in the summer of next year. In this case, it could lead to the average mortgage rate, which is now around 2.2 percent, and raise to 4.3 percent, according to the central bank.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.