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Reuters
11 hours ago
- Business
- Reuters
Swedish government plans to ease mortgage rules to help first-time buyers
STOCKHOLM, June 17 (Reuters) - Sweden's government said on Tuesday it planned to ease mortgage rules to help first-time buyers and those without capital for a deposit to get into the housing market. Under the plan, people wanting a mortgage will be able to borrow up to 90% of the value of their property, up from the current 85%. A current requirement for the heaviest borrowers to pay back 3% of their loan each year will be dropped. The new rules are expected to be introduced at the start of next year. "The new proposals will make it easier, for example, for first-time buyers and young families to get onto the property ladder," Housing Minster Andreas Carlson said. "At the same time, we have taken into consideration financial stability through measures to hold back indebtedness." The proposal broadly reflects recommendations in a white paper last November. Critics have said that tough mortgage rules, introduced after the financial crisis of 2008-9, are necessary to reduce risks in the banking system. Swedish home-owners are among the most highly indebted in Europe, with debts of around 180% of disposable income, down from a peak of around 200% in 2021. Most mortgages are floating rate, making households sensitive to interest rate changes and amplifying swings in the economy. The government said it also planned to strengthen the central bank's role in macroprudential oversight. The central bank will take over responsibility for setting the level of banks' countercyclical financial buffer, which has up to now been set by the Financial Supervisory Authority.
Local Sweden
12-02-2025
- Business
- Local Sweden
Swedish government green-lights largest infrastructure project in a century
The government described the North Bothnia railway line as northern Sweden's largest infrastructure project in more than a century. It will run a total of 270 kilometres along the northeastern coast and link the towns of Umeå and Luleå, home to operations from several large industrial companies. Those include steel company SSAB, mining group LKAB and the Hybrit pilot plant working to develop fossil-fuel-free steel. Once completed, the railway line will serve the industrial zone. Tuesday's green light was for the second stage of construction on the railway line, linking the towns of Dåva and Skellefteå. It has been repeatedly delayed since 2018 due to ballooning costs. Construction on the first segment began in 2018, according to the Swedish Transport Agency, with the last portion between Skellefteå and Luleå still at the planning stage. "This is a long awaited project in the region, essential for industry and crucial for work commuters," Infrastructure Minister Andreas Carlson said. He said the stretch of railway was "an important prerequisite to make the large investments in this part of the country a success". In December 2023, a cargo train with a full load of iron ore from mining group LKAB derailed on another line in northern Sweden – the Malmbanan line linking Kiruna to Narvik. That crash caused major damage to a long stretch of track and paralysed traffic for three months. The government vowed Tuesday to implement measures ahead of schedule aimed at boosting "capacity and reliability" on the Malmbanan line. Backed by the government, Swedish industry has invested massively in mineral-rich northern Sweden, including in fossil-free steel production and large wind farms. But the green transition, which requires more renewable energy and minerals, threatens the rights and livelihood of Sweden's Indigenous Samis, rights group Amnesty said in a recent report. Infrastructure projects often intrude on their ancestral activities, such as traditional reindeer herding which requires vast open spaces, the rights group said.
