SpareBank 1 SMN is to raise its interest rate on residential mortgages by 0.25 per cent point for new borrowers as from 26 September, and by the same margin on other loans as from 9 November.
Several factors have a bearing on the bank's decision to raise the mortgage rate. On Thursday 21 September Norges Bank (the central bank) put up its base rate - for the first time since May 2011.
"Norges Bank's interest rate increase was expected, and money market rates have gradually edged up as doubts about a rate increase faded away in the run-up to the present decision", says Executive Director Svein Tore Samdal at SpareBank 1 SMN.
The mortgage rate is being changed against the background of the gradual rise in interest rates in the money market. The new lowest mortgage rate will be 2.40 per cent on first home mortgages granted to members of the Norwegian Confederation of Trade Unions (LO) below the age of 34.
"We believe this mortgage rate change is expected by our customers, and that most of them will be able to adapt their finances to somewhat higher costs. At the same time the bank is at the service of any customer wanting advice on how to meet the interest rate increases expected ahead", says Svein Tore Samdal.
SpareBank 1 SMN will concurrently adjust the interest rate on some deposit products by up to 0.25 percentage points as from 9 November.
"SpareBank 1 SMN is undergoing a period of vigorous growth and new customers are joining us in record numbers. We will remain an attractive choice after the mortgage rate adjustment for customers desiring a combination of simple, modern solutions and access to skilled advisers who know the people and the region of which they are part", says Mr Samdal.
Trondheim, 24 September 2018
Contact persons at SpareBank 1 SMN:
Executive director Svein Tore Samdal on +47 902 08 588
Head of Corporate Communications Hans Tronstad on +47 941 78 322
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)