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Swedish banks say rate fall making borrowers complacent

Pedestrians walking past residential property advertisements in the window of an estate agent in Stockholm. Sweden's Financial Supervisory Authority has capped mortgages at 85 per cent of home values and is planning to force households to pay down new mortgages to 50 per cent of the value.


MORE than three years of falling interest rates have made Swedes complacent about the risks of household debt costs, the nation's biggest lenders said.

That's evident in the mortgage market where the majority of borrowers are taking flexible-rate loans even as long-term