March 19, 2018 / 8:24 AM / in a month

Finland's financial watchdog tightens mortgage loan cap

HELSINKI, March 19 (Reuters) - Finland’s financial watchdog on Monday decided to tighten the loan cap for other than first home purchases, saying it was concerned over growing household debt in the Nordic country.

The maximum loan-to-collateral ratio for loans other than first-home loans will be tightened by 5 percentage points to 85 percent in July.

“Household indebtedness is the most significant vulnerability of the Finnish financial system,” the watchdog said. Finnish household debt to disposable income ratio reached 128 percent last year. (Reporting by Jussi Rosendahl, editing by Terje Solsvik)

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