Monday , November 30 2020

Young people are denied a mortgage in Gothenburg

Gothenburg is one of the 13 cities in Sweden where young people can not buy the first apartment. Despite the constant work and the cash payment. The reason is the tightening of credit rules, the new Skandia report shows.

  • Posted 05:30, April 24, 2019

A new Skandia survey shows that a young adult with a fixed job and a cash installment does not receive normal size mortgages in 13 of 25 large cities in Sweden. Gothenburg is one of them.

Here the young mortgages give up in all of Gothenburg, not just those who want to buy more expensive dwellings in the city center. In Stockholm, the situation is the same.

At the same time, several years wait for Boplat to get a rent in Gothenburg.

New residential complex in Gothenburg

– It is worrying that a young person can not get a mortgage loan. Despite the constant employment and rescue together for a large enough cash contribution. We have to find solutions so that the price increase in recent years and the tightening of credit rules do not prevent young people from getting their own home, "said Johanna Servol, CEO of Skandia Bank in a press release.

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Tighter credit rules

The reason for this is that tougher lending rules, such as stricter depreciation requirements, tighter mortgage ceilings, and a drastic rise in house prices, show the report.

– It is positive that the previous depreciation-free depreciation culture has changed. But the new rules have consequences for young people who are not reasonable. Regulations need to be more flexible and take into account the individual's life situation – not least because more people can enter the housing market, says Johanna Serouol, and continues:

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– For example, banks need to have more opportunities to apply periods without depreciation to take into account different periods of their lives. This could be an opportunity for more young people to stand on their feet.

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