More opt for fixed interest rates

MoneyMoney.Photo: Terje Pedersen / NTB scanpix

More people are asking for fixed interest rates in Norway

Demand for fixed-rate loans continued to increase in the fourth quarter last year according to a report from Norges Bank.

After Norges Bank (Norwegian Central Bank) raised the interest rate last autumn and notified of several future interest rate increases, many loan customers want to tie the interest rate on their mortgage loans wrote Dagens Næringsliv (DN) newspaper.

DN wrote that in the loan survey of Norges Bank for the third quarter of last year, the banks reported the highest increase in demand for fixed-rate loans for several years.

Even more customers will probably ask for fixed interest rates on their loans in the time ahead, to secure against any interest rate hike.

Fixed interest rates in Lånekassen increased

Fixed interest rates in the Norwegian Students’ Fund (Lånekassen) are now 2.472 per cent for three years, 2,804 for five years and 3,309 for ten years of binding.

The three rates increased by 0.127 percentage points, 0.117 percentage points and 0.145 percentage points, respectively, Lånekassen informs.

If the market develops as the forecasts indicate, the current floating interest rate of 2.09 per cent will increase by 1.25 percentage points by 2022 to 3.34 per cent.

Only about eight per cent of the more than 640,000 former students who  currently repay their student loan has a fixed rate on their loan, according to the Norwegian Students’ Fund.

© NTB Scanpix / #Norway Today
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