Major Nordic banks including Nordea, SBAB, Swedbank, and Danske Bank have raised fixed mortgage rates in recent days, according to multiple financial reports from March 25, 2026. Experts attribute the increases to what they describe as a 'war premium' that banks must now pay on their mortgage bonds following the US and Israel's attack on Iran on February 28.
The banks' financing costs, which had been declining at the start of the year, have increased by approximately 0.5 percentage points for standard maturities since the outbreak of conflict. This increase in funding costs has directly translated to higher mortgage rates for consumers.
Then there will be an increase in corresponding mortgage rates. That is what one can expect and it is reasonable
John Hassler, a macroeconomics professor at Stockholm University, stated that the rate hikes are both expected and reasonable given the circumstances. 'Then there will be an increase in corresponding mortgage rates. That is what one can expect and it is reasonable,' Hassler said.
The rate increases specifically affect fixed-rate mortgages, while the future of variable-rate mortgages remains uncertain according to the reports. The coordinated moves by these major mortgage lenders reflect broader market pressures stemming from geopolitical tensions in the Middle East.