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Home builders fear new mortgage rules

Published torsdag 13 november 2014 kl 11.08
Ett halvt färdigbyggt lägenhetshus.
Foto: TT

Some construction companies warn Sweden's likely new rules on forcing mortgage repayments could hinder the housing industry.

This week, Sweden's Financial Supervisory Authority proposed tightening rules for borrowers, which would have them gradually pay off at least half their mortgage.

Industry group the Swedish Construction Federation says to Swedish Radio News reports that stricter lending rules would make mortgages pricier and that fewer new homes would be built as a result.

But the CEO of construction company JM, Johan Skoglund, told Swedish Radio News while the proposal could lead to more people staying put in their current home, he doesn't see any long-term negative effects from the suggested changes.

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