Category: Lower payments
Set payments
Customers can reduce their payment burden by limiting instalments on their loans to a set amount. This solution is available to customers with exchange rate indexed and foreign currency loans, as well as to customers with ISK-denominated loans.
Further information on set payments on exchange rate indexed and foreign currency loans
Further information on set payment on ISK-denominated loans is available at all Landsbankinn branches
Payment smoothing
Payment smoothing is a way to temporarily lower the repayment burden on loans. In the long term, payment smoothing can lead to increased cost due to accumulated interest. Customers with foreign currency loans may opt to apply payment smoothing to their loans; the solution was applied automatically to all indexed housing loans on 1 December 2009.
More on payment smoothing on indexed housing loans
More on payment smoothing on foreign currency loans
Interest payments
By opting to pay accumulated interest only, customers can ease their debt service. It is possible to limit repayment of loans issued against mortgages in residential housing to interest payments only for up to 12 months. If the loan is in arrears, the possibility of refinancing the default is examined.
Request an interview or visit your local branch
Freezing
Freezing means that no payments take place during the deferral period; however, the loan principal increases equivalent to accrued interest and indexation. It is possible to apply the solution for up to 3 years, provided certain conditions are met. If the loan is in arrears, the possibility of refinancing the default is examined.
Request an interview or visit your local branch
Deferral due to slow sales market
Customers who are in the process of building or have purchased real estate but not managed to divest older housing can request postponement of interest payments and instalments on the principal on one of the assets. Once freezing is lifted, accrued interest and indexation is added to the principal and the payment burden recalculated.
Request an interview or visit your local branch
