Q&A

Postpone payment of housing loans

Customers with housing loans and real estate loans issued by Landsbankinn, can apply to postpone payments or temporary decrease of payments for up to six months if necessary. The solution provides for the deferral of housing loan payments for six months but the customer can cancel deferral at any time. Interest accrues to the principal at the end of the period. The term of the loan is extended to reflect the postponement period. The solution is primarily designed for individuals facing significant loss of income due to unemployment, reduced working hours or illness. The Bank levies no fee on the amendment but changes to the loan require public registration. District commissioners charge ISK 2500 for public registration, payable by the borrower.

Apply

Because of Covid-19, the addendum to the agreement to postpone payment can be signed using electronic ID. The addendum and its terms enter into force immediately upon electronic signature. Note that the addendum must be publicly registered by 16.02.2021.


Disbursement of private pension savings

One of the solutions presented by the government is temporary authorisation to withdraw private pension savings (also called supplementary pension savings).

  • The maximum amount available for withdrawal is ISK 12 million.
  • The maximum monthly withdrawal is ISK 800,000.
  • No restrictions apply to the disposition of the funds.
  • Income tax is levied on the amount. The pension fund/bank handles withholding tax.

This solution may be suited to individuals who lose their income, especially when no other savings exist.

The authority to withdraw private pension savings is important in the current circumstances but it must be borne in mind that this reduces the pension available upon retirement. Income usually decreases considerably when individuals go into retirement, making it important to continue to build savings.

How do I apply?

 

Apply with electronic ID:

Electronic ID can be used to apply for temporary disbursement of private pension savings on the fund member website.

As of May 2020, disbursement will take place on the 20th of every month. Applications received before the 15th of each month will be paid out on the 20th.

The fund member website

Apply without electronic ID:

Fund members who do not have electronic ID can email RadgjofVL@landsbankinn.is  and request an application form. A completed and signed form is scanned and emailed back to RadgjofVL@landsbankinn.is.

As of May 2020, disbursement will be made on the 20th of each month and the application must be submitted no later than the 15th of each month.


Refinancing

It is important to ensure that your housing loan aligns with your current situation and goals at any given time. As interest rates have decreased, it might pay to look at available options. The housing loan calculator is a good way to compare loan options. If you require advice about housing loans or refinancing of housing loans, you can request a phone consultation and we will be in touch.

  • How do I apply for a housing loan or refinancing?
  • How can I get a credit assessment?

Loans

You can adjust your credit limits in the app and online banking. You receive a credit framework which you can divide between Aukalán loans, overdraft authorisations and card limits as you see fit. The credit framework is calculated regularly automatically and is based on your finances and business history. For any credit facility or amendment in excess of the credit framework, call +354 410 4000 or request a financial consultation.

  • How do I apply for solutions to payment difficulties?
  • How do I change an overdraft authorisation?
  • How do I apply for an Aukalán loan?
  • How do I apply for a vehicle loan?