In order to be granted temporary amortization freedom, the household needs to demonstrate a greatly reduced income. Common reasons are unemployment or sick leave – but also increased expenses.
Despite unemployment falling in 2022, several banks state that applications to have amortization paused have increased.
– During the autumn and winter we have seen an increase in the number of applications for amortization freedom. But it is from low levels, and the number of applications is also very limited if you look at our total number of mortgage customers, says Niklas Magnusson, press manager at SEB.
The demand for advice is high
Interest rate increases are not a reason for amortization, a possible higher interest rate must be factored in when a mortgage is granted. Instead, it suggests that increased expenses due to inflation, as well as, for example, high electricity bills, may be the reason why more people want to pause their amortization.
Danske Bank shares the view that the number of requests from customers applying for amortization freedom has increased, although it remains at a low level. On the other hand, the demand for advice is very high, says Anneli Adler, head of private markets at Danske Bank Sweden.
“There are significantly more people than before who both call and are worried and who ask for a reprieve. We try to use the amortization valve as much as possible for those customers where we see that it is the only solution, but often counseling can create peace of mind,” she writes in an email to SVT.
6,000 customers received yes in 2022
In recent months, Swedbank has also seen an increase in the number of customers who contacted them about freedom of amortization, the bank’s press service states.
The banks do not want to provide any exact figures on how many customers are involved.
According to the Financial Supervisory Authority, 6,000 customers were granted amortization freedom in the fall of 2022. However, there is no comparative figure from previous years.