Finansinspektionen (FI) follows the development of household debt on an ongoing basis. The mortgage survey serves as an important source of data for this work. High debt can mean risks for individual households, banks, financial stability and the macroeconomic devel-opment.
Household debt is a crucial matter which FI monitors closely, and the mortgage survey is an important part of this work. Household debt has increased sharply in recent years. During the same period, mortgage rates have fallen and are now at historically low levels, and house prices have also risen rapidly. Finansinspektionen (FI) judges there to be an elevated risk that house prices will fall compared to a normal state, and it is more likely that interest rates will rise than that they will fall.
The average debt-to-income ratio for households with new mortgages increased from 387 per cent to 406 per cent between 2014 and 2015, according to FI:s report.
Finansinspektionen monitors the mortgage market and household indebtedness closely, and the mortgage survey is an important part of that process. The survey for 2014 shows that the average loan-to-value ratio and debt-to-income ratio was unchanged between 2013 and 2014, despite rapidly increasing house prices.
A smoothly functioning credit market is fundamental to the ability of modest-wealth households to purchase a home. However, high indebtedness carries a risk for individual households, and can pose a risk to financial stability. It is therefore important for Finansinspektionen (FI) to monitor developments in household indebtedness.
This report is based on Finansinspektionen's (FI's) third large mortgage survey. The survey is based on comprehensive material from the eight largest banks in Sweden.
Loan-to-value ratios decreased for the first time in 10 years and the share of households with new loans over 85 percent has fallen by fifty per cent since 2009. These are some of the findings in Finansinspektionen’s follow-up of the mortgage cap.
Finansinspektionen (FI) has surveyed the development in the banks’ lending for single-family houses and tenant-owner’s flats. At the end of 2008, Swedish households had approximately SEK 1,800 billion in mortgage loans. The investigated banks’ lending constitutes just under 90 per cent of this.
The banks’ risk exposures to the Swedish mortgage loan market have increased due to higher mortgage levels and long amortisation periods. The mortgage lending to Swedish households constitutes the largest exposure in the majority of the banks.