There has been a significant tightening in banks ‘lending practices’ as a result or mortgage regulations, but Norwegians’ debt continues to increase.
“This gives cause for concern,” said FSA Director, Morten Baltzersen, to Dagens Næringsliv newspaper.
The audit was presented in the second edition of the report ‘Financial Outlook
2017’ on Wednesday.
The average debt burden among Norwegian households is now at 222% of disposable income, the newspaper reported. At the same time, a record low interest rate has Ensured that household interest rates have remained relatively low.
The FSA fears that the population underestimate the likelihood of higher interest rates, and pointed out that many borrowers are very vulnerable to interest rates.
‘Norwegian borrowers have long preferred floating interest rates on their mortgages.
This year’s mortgage survey shows that the proportion of new fixed-rate loans has fell further, and is now as low as 4%.
This means that Norwegian households are hit hard, hit fast, and hit to hurt, by an interest rate hike, and this may have major negative effects on the Norwegian economy, according to a statement in the audit.
© NTB Scanpix / Norway Today
