The two lenders are thus following the series of cuts in the variable mortgage rate from other leading players on the Swedish mortgage market, such as Handelsbanken, Skandia, Nordea, and Danske Bank.
Both Länsförsäkringar and SBAB are leaving their rates on mortgages with longer terms, 1-10 years, unchanged.
The Swedish Central Bank is expected to cut the repo rate by 0.25 percentage points on Wednesday, which would be the third cut this year. The variable rates at mortgage banks usually follow the repo rate up and down.
Riksbank Governor Erik Thedéen has recently indicated that he expects the repo rate to be cut three times until the end of the year from the current 3.50 percent. However, the pricing on the interest rate market suggests a likelihood of four cuts this year - i.e., a total of 1 percentage point down to 2.50 percent.
The pricing suggests that the likelihood is high that there will be four more cuts in the repo rate by autumn 2025, down to 1.50 percent.
If the mortgage rate were to decrease by 2 percentage points for a mortgage of three million kronor, it would reduce the interest cost by 60,000 kronor per year or 5,000 kronor per month, disregarding the effects of interest deductions.
