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Nordea's Norwegian mortgage lending slows as tighter regulation kicks in
April 27, 2017 / 9:54 AM / 8 months ago

Nordea's Norwegian mortgage lending slows as tighter regulation kicks in

OSLO, April 27 (Reuters) -

* Snorre Storset, Chief Executive of Nordea’s Norwegian unit, says the bank has seen lower demand for mortgages in the first quarter due to tighter public regulations and slower growth in housing prices

* Says the second quarter will be a more important temperature gauge for the housing market, because there is usually high activity in this period

* “We don’t experience poor activity at the moment, but it is not as hysterical as we have seen in previous years,” he said

* In the first quarter, lending growth in the retail market halved to 3 percent from the same time a year ago, but the housing price development has also slowed significantly

* Some customers have been rejected following tighter mortgage regulations introduced at the start of the year, but not a large proportion

* Nordea expects Norway’s housing price growth rate to half following stricter regulation combined with a greater balance of supply and demand

* In March, the year-on-year growth in housing prices stood at 11.7 percent (Reporting by Camilla Knudsen)

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