The Swedish Financial Supervisory Authority (Finansinspektionen) has adopted new general guidelines aimed at strengthening consumer protection in the mortgage market, including expectations that mortgage lenders inform borrowers ahead of the end of time-limited interest-rate discounts. At the same time, it has issued new general guidelines on how lenders should calculate interest rate differential compensation for consumers who repay fixed-rate mortgages early. The guidance responds to the authority’s finding that banks do not always inform customers when a temporary mortgage rate discount is about to expire, which can result in borrowers automatically paying a higher rate without an opportunity to renegotiate. Under the new general guidelines, mortgage lenders should notify consumers in writing at least one month before a mortgage rate discount ends. The updated guidance on interest rate differential compensation is described as an adaptation to new legislation. Both sets of new general guidelines take effect on 1 July 2025.
Finansinspektionen 2025-06-17
Swedish Financial Supervisory Authority issues new guidance for mortgage lenders on advance notice of expiring rate discounts and early repayment fee calculations
The Swedish Financial Supervisory Authority (Finansinspektionen) has issued new guidelines to enhance consumer protection in the mortgage market. These include requirements for lenders to notify borrowers in writing at least one month before the expiration of time-limited interest-rate discounts and updated methods for calculating interest rate differential compensation for early mortgage repayment. The guidelines will be effective from 1 July 2025.