SpareBank 1 SMN is to raise its mortgage lending rate by up to 0.25 percentage points. The lowest mortgage rate will then be 2.40 per cent on first-home mortgages granted to members of the Norwegian Confederation of Trade Unions (LO) below age 34.
Several factors influence the bank's decision to increase its mortgage lending rate. On Thursday 21 March, Norges Bank (Norway's central bank) raised its key rate, affecting the wholesale price of money that the banks borrow in order to lend to their customers.
"The rate increase set by Norges Bank comes as no surprise. According to a survey recently commissioned by SpareBank 1, seven out of ten borrowers expect mortgage rates to rise in 2019. We believe mortgage borrowers will rapidly adjust their financial situation to some increase in expenses. At the same time the bank is on hand for any customers needing advice on how to meet higher mortgage borrowing costs", says executive director Nelly Maske at SpareBank 1 SMN.
SpareBank 1 SMN will concurrently adjust the interest rates on some deposit products by up 0.25 percentage points as from 15 May.
"SpareBank 1 SMN's unique model builds on skilled advisers who are present locally across entire Central Norway, combined with simple and modern self-service solutions. Competitive terms on loans and deposits alike are also part of the picture. We have pursued a successful strategy, and are among the banks in Norway that have posted the very highest growth in recent years", says Ms. Maske.
All customers whose mortgage rate is due to change will receive information via their online bank or via ordinary mail on how the rate change affects their mortgage. For existing customers the rate change will take effect on 15 May 2019.
Trondheim, 26 March 2019
Contact persons at SpareBank 1 SMN:
Executive Director, Retail Banking, Nelly Maske on +47 901 38 380
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)