Swedbank has increased its variable mortgage interest rate by 0.15 percentage points, following a similar move by Danske Bank last Friday. The new listed interest rate for Swedbank will be 3.94 percent, according to multiple financial reports from March 30, 2026.
This marks the second major bank to raise variable mortgage rates in recent days, with Danske Bank having been the first among larger banks to implement such an increase. The banks' actions come despite the Swedish central bank, Riksbanken, not having raised its policy rate.
short-term market interest rates have risen significantly, leading to substantially higher funding costs
Market analysts reportedly expect interest rate hikes later this year due to rising inflation concerns linked to the Iran war. Danske Bank justified its rate increase by stating that short-term market interest rates have risen significantly, leading to substantially higher funding costs.
While variable mortgage rates are typically directly influenced by Riksbanken's decisions, banks are now moving ahead of any official central bank action. The actual average interest rates paid by borrowers remain significantly lower than the listed rates, according to reports.