Íslandsbanki introduces new terms for mortgage loans
The bank will raise the loan to value ratio from 70% to 80% by market value and at the same time lower the nominal interest rate on mortgage loans.
Favorable interest rates on loans up to 70% of the property value as determined by the Icelandic Property Registry
Customers can now receive mortgage loans for up to 70% of the registered property price at more favourable terms than previously offered. The loans will be offered at a fixed nominal (i.e. non-indexed) rate of 6.2% in the first three years of the loan period. Also available to customers are more favourable terms on floating nominal interest rate loans, where rates will be lowered to 5.25% (from the previous 5.40%).
Customers requiring higher loans can get a second mortgage up to 80% of the purchase (market) price. The terms of these supplementary loans are 7.2% nominal interest rate fixed for three years or 5.75% for loans bearing nominal floating interest rates. The loans are granted for new loans but also for the purpose of refinancing existing loans.