Landsbankinn lowers lending rates
A new interest rate tariff becomes effective as of 14 April, strengthening the Bank’s position as the domestic financial undertaking that offers the most competitive lending rates.
Variable interest rates on housing loans decrease by 0.10 percentage points (pp). Fixed rates on non-indexed housing loans decrease by 0.30-0.40 pp and fixed rates on indexed 60-month housing loans by 0.10 pp.
Interest rate on ISK-denominated deposits remain unchanged.
Prime rates to companies and variable rates on vehicle and equipment financing decrease by 0.10 pp. Overdraft interest remains the same.
Landsbankinn last lowered interest rates on 23 March of this year following an interest rate decision of the Central Bank of Iceland.
This most recent interest rate decision is mainly in response to a cut in the bank tax enacted by the authorities as part of Covid-19 measures. The bank tax is levied on the total liabilities of financial undertakings and remains, despite the cut, considerably higher than in countries Iceland compares itself with.
Further information is forthcoming in the Bank’s new interest rate tariff.