PRO - SpareBank 1 SMN : Revises its mortgage lending rate
In light of Norges Bank's key policy rate increase, SpareBank 1 SMN is to raise its mortgage lending rate by up to 0.25 percentage points. The lowest indicative mortgage rate after the change will be 2.70 per cent.
On Thursday 20 June Norges Bank raised its key policy rate. This affects the cost of funds that banks borrow in order to make loans available to their customers. SpareBank 1 SMN has therefore decided to increase the interest rate on its loans.
"Norges Bank was expected to raise its base rate further. We therefore believe that mortgage borrowers are prepared for the rate increase, and that they will rapidly adjust their finances to some increase in costs. At the same time it is important that borrowers make sure that they can handle a higher mortgage interest rate", says executive director Nelly Maske.
For borrowers who prefer not to run the risk posed by a floating mortgage rate, the solution may be to opt for a fixed mortgage rate agreement.
"At SpareBank 1 SMN we are always available to customers in need of advice in a period when the interest rate level edges up. We have skilled advisers with a local presence, combined with simple, modern self-service solutions, and our terms and conditions are competitive", says Ms Maske.
SpareBank 1 SMN will concurrently adjust the interest rates on some deposit products by up 0.25 percentage points. 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 August 2019. For all new mortgages, the interest rate will take effect from 1 July.
Trondheim, 25 June 2019
Contact persons at SpareBank 1 SMN:
Executive director, Private Banking, Nelly Maske on +47 901 38 380
Executive director, Finance, Kjell Fordal, on + 47 905 41 672
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This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SpareBank 1 SMN via Globenewswire