Regulatory Alerts2019-02-28
Finansinspektionen’s general guidelines regarding limitations to the size of loans collateralised by residential properties
Finansinspektionen issued these general guidelines to require regulated financial institutions to limit the loan-to-value ratio for new residential mortgages in Sweden to a maximum of 85 percent of the property's market value. The regulation applies to joint stock banks, savings banks, credit market companies, and other authorized lenders to prevent unhealthy credit market developments and protect consumers from excessive risk. These guidelines entered into force on 1 January 2017, repealing previous 2010 guidelines and mandating that firms establish these limits in their internal credit instructions.
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