More and more people are taking out mortgages, half of all new mortgage borrowers, according to the Swedish Financial Supervisory Authority.

Anyone who for various reasons wants to break the mortgage early can get a sad surprise, the interest rate differential compensation.

This is the name of the cost the borrower has to pay - Finansinspektionen thinks it is too expensive. 

- The compensation is far too high, the bank is overcompensated.

This means that many people withdraw from changing and do not know about this.

It is bad for consumers, says Erik Thedéen, head of the Swedish Financial Supervisory Authority to SVT.

Affects the weakest

How the cost strikes naturally varies with the interest rate situation, but this is what a current example might look like: 

Anyone who takes out a loan of one million kronor at two percent interest and commits it for three years, but cancels the loan after only one year, costs about 21,000 kronor too much compared with the bank's actual cost, according to the Swedish Financial Supervisory Authority.

Erik Thedéen believes that the current model where the cost of canceling the loan is based on the borrower's agreed interest rate, not the bank's costs, mainly affects those who are weakest in the loan market and have the highest loan interest rate.

They are often young people who receive the highest interest rate because they often have the greatest risk of not being able to repay the loan:

-It is completely unreasonable because (when the loan is redeemed, editor's note) the bank has no risk left.

Big money for the banks

These are large amounts that are in fixed loans (over a one-year term), over SEK 1,600 billion.

Big money not only for borrowers but also banks.

The Government is now cautiously positive about Finansinspektionen's proposal

-I think you should get paid for the risks you take.

It is a basic instinct I have, says Minister of Finance, Max Elger (S), to SVT. 

The Bankers' Association does not want to comment until there is a complete proposal, a so-called referral, from the government.