Landsbankinn offers residents of Grindavík to keep same interest on loans

Grindavík.

Grindavík. mbl.is/Hörður Kristleifsson

Landsbanki offers the residents of Grindavík who decide to sell their apartment og house to the state and have a fixed-interest mortgage with the bank to keep the terms of the loan when buying a new property.

This is stated in a notice from Landsbanki.

A bill to legislate on the purchase of residential buildings in Grindavík is currently before the Icelandic parliament, Althingi. The bill assumes that the residents of Grindavík can sell their residential homes in Grindavík to Þórkatla, a company owned by the state. The bill does not, however, assume that loans that rest in homes in Grindavík can be transferred to new real estate, i.e. mortgage transfers are not permitted.

Interest rates remain unchanged

“If a customer has a mortgage at Landsbanki for a home in Grindavík and has fixed the interest rate on the loan for three or five years, he/she will receive the same interest rate on an equally high new mortgage to purchase a new property if the loan interest rate (loan interest rate) is comparable to the loan interest rate on a previous property,” the announcement states.

The interest rate will remain unchanged for the remainder of the fixed interest period, after which the interest rate will be released following the original loan terms.

Grindvík residents receive mortgage loans as first-time buyers

Landsbanki has also decided that Grindvík residents who bought their first home in the town during the two years before the evacuation of Grindavík on November 10, 2023, will be exempted from borrowing fees for new mortgages as if they were first-time buyers.

In addition, all owners of residential buildings in Grindavík can receive mortgages for up to 85% of the purchase price of the building, as is the case with first-time buyers. The maximum payment burden may be up to 40% of disposable income, under the statement of the Central Bank of Iceland’s Financial Stability Committee.

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