Interest rates going up

After years with negative interest rates on loans, the rates have now flipped positive.

Since the 2008 financial crisis, central banks across the world have lowered their interest rates to boost consumer spending. This policy is now being tightened in an effort to combat inflation.

In keeping with this trend, the F1 flexible rate mortgage loans in the Faroes will become more expensive, and interest rates on regular bank loans may also go up, according to Turid Finnbogadóttir Arge, chief operating officer of BankNordik.

“This will affect most of our borrowers as relatively few Faroese households take out fixed rate loans,” she says.

Read the Faroese version of this article here.

Translated by prosa.fo.

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