During the fall, there has been quite a bit of talk that there should be some kind of law that says you have to repay your mortgage. The reason for this is that such a rule would mean less uncertainty and that people must have better buffer etc when taking mortgages. Previously, no bank was particularly keen to introduce such rules, but now CEB is taking the step.
The idea of introducing repayment requirements
As I said, that there should be a greater security financially for the borrowers and that it should also more generally lead to people less often taking out mortgages when they are not really able to afford.
The very idea of repayment requirements has been debated a lot lately, but the banks have not immediately been on the cusp when it comes to introducing the requirements themselves and thus we have not got any law governing it all.
Prior to 2013, however, it seems that the first bank is taking the step towards demanding repayment on the mortgage and this without having been forced in any way. CEB chooses to introduce these on all new mortgages and on all those renewed and they have chosen on their own to take this step.
CEB requires you to repay your mortgage
The requirements that CEB will make in the future is that you must repay the loans that are above 70% of the value of the property and that you have repaid the loan for a maximum of 60 years. Previously, there was a recommendation on repayment of loans over 75% of the value of the home, but this has now been converted into a requirement and the percentage has been reduced slightly.
CEB will abide by these rules as far as they can, but will also look at the individual conditions and try to come up with a solution that suits the borrower. You can, for example, apply for not having to repay the loan for 60 years and if there are special circumstances, that requirement can be skipped.
According to CEB, the trend has been on the path for some time now, but no one has really dared to take the step and introduce repayment. So now the bank is first with this and we will see if the other banks follow now that one has dared to go against the stream. This would mean a little more security in the Swedes’ economy and greater demands on buffer.