Title: The mortgage limitation and its impact on the mortgage market

Level: Final assignment for Bachelor Degree in Business Administration

Author: Mattias Arnkvist and Magnus Vitasp Persson

Supervisor: Lars Steiner

Date: 2011 – May

Aim: We have conducted this report to find out what effect the mortgage limitation has had on the mortgage market since its introduction in autumn 2010. The mortgage limitation has both before and after the introduction been a topic of discussion as it affects many and above all makes it diffucult for certain customer groups.

Method: This report was written by a qualitative method. The report uses qualitative and quantitative data. The quantitative data we have in the report are printed literature in books, articles and journals as well as data taken from Internet. Our qualitative part is based on the interviews with four of the largest banks in Sweden and the Financial Supervisory Authority, which is the state administrative authority that took the decision to introduce the mortgage limitation.

Conclusions: The results of the collected data are that the mortgage limitation from a statistical point has resulted in the form of a breaking trend in which mortgage levels are now falling. The targets that the Financial Supervisory Authority had with the regulation were to reduce the mortgage levels and create a healthier credit market. According to our own personal opinions, the opinions of the banks we interviewed and the Financial Supervisory Authority, the mortgage limitation have been helpful to the market and all parties believe the regulation will stand firm.

Suggestions for future research: When our report i based on a bank's perspective, it would be interesting to see a study on the subject with a different approach, for example with a consumer view.

Contribution of the thesis: The contribution of this report is our unique way to present and discuss the data, through a unifying discussion method of a category analysis. This report is valued for both operators and consumers in the mortgage market.

Key words: Mortgage limitation, mortgage market, Financial Supervisory Authority, banks, amortization.