Mortgages: Why Sweden is limiting them to 105 years

"There was a study carried out around a decade ago that showed that at the rate Swedes were paying off their mortgages, it would take them on average 140 years to clear the debt.

"The financial regulator was keen to tackle this, but had pushback in the courts - and there wasn't really any political will to do anything about this. "In reality: a standard mortgage in Sweden is usually around 50 years - even though there is now this 105-year limit.""After Sweden got a new social democrat government in 2014, things did start to change."So now, homeowners have to pay 2% of the mortgage annually if they've borrowed more than 70% of the value of the property - or 1% if they've borrowed 50 to 70% of the value.

"In most cases, if there's a mortgage, the inheritors will sell the home at a profit usually and they'll pay off the mortgage. "But if the debts of the deceased are worth more than the assets, the inheritors are not personally liable to repay them.However he says most homeowners are encouraged to invest elsewhere."The advice a lot of people have received from personal finance experts is that it makes more sense for them to invest in the stock market than in their own property, because the long-term returns are likely to be greater than paying off their mortgages.

Can you hear what you are saying?

I think the old 20 year model is fine. Automation should make it less.

NTBreakfast This is pure propaganda and distracts from the core issue that house prices are out of control and needs to be regulated. We are not Sweden

Someone should inform the financial institutions about climate change

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