State could guarantee first-time mortgages
TT/The Local - [email protected]
Published: 7 Jun, 2007 CET.
Updated: Thu 7 Jun 2007 08:29 CET
People who want to buy their first home but have trouble getting a bank loan could soon get a credit guarantee from the state, under plans unveiled by the government.
The new programme would help people who are unattractive to mortgage lenders, for example, young people without permanent jobs but with several casual jobs. The Finance Ministry estimates that 5,000 people a year will apply for the guarantees.
"Everything suggests that this is a win-win situation for everyone," said Housing Minister Mats Odell to Swedish Radio. The programme would be self-financing, with the mortgages costing 0.2-0.4 percent more than normal loans.
The Finance Department proposal would mean the state guaranteeing around 100,000 kronor in interest payments on a 1 million kronor mortgage.
Comments
See Also
The new programme would help people who are unattractive to mortgage lenders, for example, young people without permanent jobs but with several casual jobs. The Finance Ministry estimates that 5,000 people a year will apply for the guarantees.
"Everything suggests that this is a win-win situation for everyone," said Housing Minister Mats Odell to Swedish Radio. The programme would be self-financing, with the mortgages costing 0.2-0.4 percent more than normal loans.
The Finance Department proposal would mean the state guaranteeing around 100,000 kronor in interest payments on a 1 million kronor mortgage.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.