On Thursday, the Riksbank raised the key interest rate from 0.25 to 0.75 per cent. This is the largest interest rate increase in 22 years.
According to Riksbank Governor Stefan Ingves, more major increases are to be expected – already this autumn. It will be tougher times when mortgages become more expensive, at the same time as inflation eats away at our incomes.
Mia Mildh lives with her daughter Ammie in the newly built residential area south of Hedvigslund in Älta outside Stockholm, where villas and townhouses are mixed with condominiums. She has a fixed loan until next year – then she expects higher costs.
– I have a monthly budget and then you have to remove what you do not feel you can afford. Of course you are worried, but it’s not like I pee on myself, she says.
In the player above: This is how Mia and her neighbors are affected by the higher interest rate.