The banks have, for a long time, presented misleading list prices to their mortgage customers. FI is now requiring them to report an average of the interest rates that customers actually pay. The proposal is an important step in strengthening the position of banking customers on the mortgage market.
A large share of the Swedish population own their own home. For most people, purchasing a home and taking out a mortgage are the biggest banking transaction of their lives. Yet, there is a lack of basic information today about what a loan costs, because the banks do not report which interest rates they actually offer their customers. The current system makes it difficult for customers to compare banks or understand how interest rates are determined.
FI therefore proposes that the banks publish the average interest rate offered to customers in the past month. Such an average actual interest rate shall be presented and updated regularly for each interest term. The information should be published on the banks’ websites.
The banks shall also inform customers what affects the interest rate offered to them. For instance, it can be a matter of the customer’s income, the size of the loan or savings.
FI’s proposal is now being submitted for consultation. The rules are intended to start applying as of 1 March 2015.