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According to a study by Finanstilsynet. A large and growing proportion of new mortgage loans is taken by people who are highly indebted to their annual income.
Almost half of the loan volume in this year's survey is for borrowers with debt exceeding four times their annual income.
– Many borrowers have high total debt in relation to their income. As well as mortgage loans, which constitute a large part of the home's value. This is worrying because these borrowers may be particularly vulnerable if they lose their income, increase in interest rates or a decline in real estate prices, says Per Mathis Kongsrud, director of digitalization and analytics at Finanstilsynet.
Source: NTB
Photo: Beate Oma Dahle / NTB
