DNB set up mortgage interest rates by up to 0.2 percentage points.
– Following a period of historically low mortgage rates, there is many factors showing that the bottom has been reached, says DNB’s executive vice president for retail banking, Trond Bentestuen.
He says there are several factors that affect interest rates which customers pay on their mortgage.
– The competitive situation and the currency value in the market are playing strong roles into our ratings.
Both factors now indicate that the bottom may have been reached after a period of historically low interest rates on mortgages in Norway, says Bentestuen.
He points out that there have been changes in the market recently and that some banks have already raised their floating mortgage rates.
– We’re going to be competitive on interest rates even after this change, says Bentestuen.
For existing customers, the change will be effective from January 9th, 2017.
All customers who will be affected will receive a letter in the mail or online bank by the end of next week about how the change affects their loans.
New best indicative interest rate of DNB is 2.05 per cent for first-time homebuyers.
Source: NTB scanpix / Norway Today