The government has today decided to go ahead with the proposal to abolish the interest difference compensation. The proposal means that from next summer it will be cheaper for households to move fixed-rate mortgages, as the fee charged by the banks will disappear.
The announcement was confirmed by Financial Markets Minister Niklas Wykman on Thursday afternoon.
– It will be a little better for the consumer in the mortgage market and it can improve competition, says Niklas Wykman to TV4 Nyheterna.
On Thursday, the government has chosen to proceed with a legislative council referral that contains a proposal for a new model for how the interest differential compensation should be calculated, something DN was the first to experience.
Mortgages with a fixed interest rate are still possible to move, but it can become an expensive story as the banks have the right to charge a fee to anyone who wants to pay off a loan early. Starting next summer, the interest rate difference compensation will disappear, and it will be cheaper to move mortgages.
The decision to abolish the interest rate difference compensation was announced by the Minister of Financial Markets Niklas Wykman (M) on Thursday afternoon.
– It should be a little easier or cheaper to break a fixed loan. It will be a little better for the consumer in the mortgage market and it can improve competition, says Niklas Wykman to TV4 Nyheterna.
Shall strengthen households
The measures are intended to strengthen consumer and household security. It will now be cheaper for the consumer to get rid of a mortgage that a household no longer wants, explains Niklas Wykman.
– We make sure that it becomes a little easier or a little more advantageous to take out a fixed loan if you wish, by making sure that it is not as expensive to pay it off early.
What do you say about the banks’ concern that this could lead to the mortgage borrowers getting an incentive to cancel their fixed loan and then just take out a new one with a lower interest rate?
– That the position of the mortgage borrower should be strengthened vis-à-vis the bank is the very idea of this. That we should get stronger households and thus get better competition and lower costs.
– This strengthens the consumer’s opportunity to negotiate a better interest rate, adds Niklas Wykman.
The new rules take effect on July 1, 2025, which is slightly later than originally planned. The reason is that the amendment could not be prioritized over other legislative work.
– There have been many laws that needed to be enacted to bring order to Sweden.