Norwegian banks queued to cut mortgage rates by Norges Bank’s interest rate cut on Thursday. Half a million Norwegians might switch banks or haggle on housing loan in years, writes Dagens Næringsliv.
The Consumer Council believes market has functioned better in spring 2015 than before.
– When people reach forward in negotiations with the bank, it also stimulates others to contact the bank. When players run up against one another, knives sharpened, says Consumer Council technical director finance, Jorge B. Jensen, told the newspaper.
Head of the Norwegian banking business in Nordea, John Saetre, points out that competition is the main driver for the Bank lowered interest rates right after the announcement from Norges Bank.
– Money market rates have priced in a rate cut from Norges Bank. We had decided that if Norges Bank lowered its key rate, then we would bring it to our customers. But Norges Bank’s interest rate is only one signal rate, we use a very small extent Norges Bank as a source of financing, says Sætre to DN.
Also Danske Bank, SpareBank 1 SR-Bank, SpareBank 1 SMN, SpareBank 1 Northern Norway and DNB cut its interest rates on Thursday.
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