Finansinspektionen. Foto: Fredrik Sandberg/TT.
Foto: Fredrik Sandberg/TT.

Listen: FSA explains new mortgage rules

"We have to make sure young people don't borrow too much"
5:04 min

A powerful state agency says the brakes need to be applied to the Swedish housing market, to stop people getting into too much debt. Radio Sweden asked their chief economist what this means, and who will be hit.

On Tuesday the Financial Services Authority (FSA) said they want to make new mortgage borrowers pay off their loans. So no longer can borrowers simply pay the interest.

The loans have to be paid off until they shrink to half the home's value.

Henrik Braconier, Chief Economist Swedish Financial Supervisory Authority, says their radical move comes because they know households with a lot of debt are vulnerable, if the economy gets a nasty shock

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