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In line with Norges Bank’s decision to raise the base rate, SpareBank 1 SMN is to raise its interest rates on mortgages and deposits by up to 0.25 percentage point. Green first-home mortgages will not undergo a rate increase and will be the bank’s cheapest ordinary loans.
The background to the interest rate change is the decision by Norges Bank (Norway’s central bank), taken at its interest rate meeting on 23 September, to raise the base rate. This affects the cost of the money that the banks borrow in order to lend to their customers. That is why SpareBank 1 SMN is now raising its interest rates in line with the change announced by Norges Bank.
“Norges Bank has for some time foreshadowed a rise in the base rate from a historically low level, so this adjustment comes as no surprise. The rate increase is a signal of an improving economy for people and businesses alike”, says Nelly Maske, executive director at Retail Banking, SpareBank 1 SMN.
In line with its desire to contribute to the green transition, SpareBank 1 SMN opts to retain extra favourable terms on loans with a green profile. After the change, green first-time mortgages will carry the bank’s lowest guideline mortgage rate of 1.35 per cent.
“As Mid-Norway’s leading financial services group, we take responsibility and lead the way towards more sustainable development. By offering highly favourable terms on green mortgages we make it simpler for people to make a sustainable choice. It is particularly important to make it attractive for young people in the establishment phase to opt for a sustainable entry to the housing market”, says Ms. Maske.
SpareBank 1 SMN will also offer highly competitive prices on other products after the interest rate change.
“We compete on price, in addition to having highly competent advisers in place across all of Mid-Norway. This, along with simple self-service solutions, fuels our clear ambition of continued growth”, says Ms. Maske.
All customers whose interest rates are now changing will next week receive information on what this means for their mortgages. For existing borrowers the rate change will become effective on 10th November, and for new borrowers on 29th September.
SpareBank 1 SMN will concurrently adjust deposit rates by up 0.25 percentage points. The new rates will apply as from 29th November for existing deposits and 29th September for new deposits.
Trondheim, 24th September 2021
Contact persons at SpareBank 1 SMN:
Executive Director, Retail Banking, Nelly Maske on +47 901 38 380 / email@example.com
Head of Corporate Communications, Eirin Sørensen Røkke on +47 452 58 536 / firstname.lastname@example.org
Press photos: https://www.flickr.com/photos/sparebank1smn/albums
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act