Further interest rate increases from the Riksbank are expected and more and more households are now approaching the breaking point. Now those who are worried about increases are being asked to tie the interest rate.
– It can be very noticeable for many households, says Arturo Arques, private economist at Swedbank and Sparbankerna.
Fixing the interest rate cheaply is long overdue and more and more households are struggling to make ends meet. Assessors also believe that the Riksbank will raise the interest rate at least once more.
If households have small margins and are worried about further interest rate increases, now is the time to act.
– Should there be another interest rate increase beyond what we think and inflation would take hold, it could be very noticeable for many households, says Arturo Arques, private economist at Swedbank and Sparbankerna.
Margins quite small
You can also see that the binding average interest rate is close to or just below the floating rate. The floating average interest rate over three months is 4.7 percent. If, on the other hand, you want to fix the interest rate for three years, it is an average of 4.5 percent.
If a household with an income of approximately SEK 50,000 a month has a loan-to-value ratio of almost 80 percent and barely SEK 4,000 left to live on – it may be a good idea to tie the interest rate, says Arturo Arques.
– In that situation, you may not have many choices.
If, on the other hand, you have a similar income but a lower loan-to-value ratio of 60 percent and a lower mortgage, you can think differently.
– Here the difference becomes quite large and here floating interest can be an option, says Arturo Arques.