Loans

Landsbankinn offers a variety of loan products designed to meet the different needs of customers. Visit your local branch to receive assistance on choosing the loan best suited to your needs.

Housing loans

Key financial decisions by individuals frequently concern real estate. It is important to proceed with care, seek advice from professional real estate agents and consider the available financing options carefully.

Inflation-indexed housing loan

Inflation-indexed housing loans are suited to customers who want favourable loans with low interest. Mortgages are available for the purchase of real estate, refinancing of loans, new construction or housing improvement purposes. The maximum loan amount is up to 70% of the property's market value or valuation and a supplementary loan can be taken out to finance up to 85%. The loan must be secured by first mortgage rights or continuous rights as of first mortgage rights. The loan term is 5-40 years and a maximum of 15 years for supplementary loans.

More

Non-indexed housing loans with fixed rates

Landsbankinn offers non-indexed housing loans with fixed rates for a term of 36 or 60 months. Mortgages are available for the purchase of real estate, refinancing of loans, new construction or housing improvement purposes and are suited to customers who wish to speed up asset formation and avoid accumulating inflation compensation on the principle. The maximum loan amount is up to 70% of the property's market value or valuation and a supplementary loan can be taken out to finance up to 85%. The loan must be secured by first mortgage rights or continuous rights as of first mortgage rights. The loan term is up to 40 years and a maximum of 15 years for supplementary loans.

More

Non-indexed housing loans with floating rates

Non-indexed mortgages with floating rates are suited to customers who wish to pay their loans off more quickly and avoid accumulating inflation compensation on the principle. Mortgages are available for the purchase of real estate, refinancing of loans, new construction or housing improvement purposes. The maximum loan amount is up to 70% of the property's market value or valuation and a supplementary loan can be taken out to finance up to 85%. The loan must be secured by first mortgage rights or continuous rights as of first mortgage rights. The loan term is up to 40 years and a maximum of 15 years for supplementary loans.

More

Project loans

New housing

Project loans in connection to new housing are for customers who wish to advance their real estate to a construction stage that allows for mortgaging. A general pledge is taken out on the building under construction. The loan can be converted into an indexed or non-indexed housing mortgage at a certain interim stage (so-called "weathertight" stage). If the borrower is also the owner of other property that allows for mortgaging, he/she can take out an indexed or non-indexed mortgage on the old property and transfer the loan to the new house once it allows for mortgaging.

Loan secured by real estate mortgage

Loans secured by real estate mortgage can suit customers in need of funds to renovate housing, to refinance loans, purchase real estate or summer housing. Interest is contingent on the mortgage percentage and customers can choose between indexed or non-indexed floating rate loans.

Renovation

Landsbankinn offers favourable loans to renovate and improve residential housing, as well as short-term loans on special terms. Long-term loans to undertake similar projects are also available under the same terms as loans to purchase real estate.

Vehicle financing

A vehicle contract is an agreement between a customer and Landsbankinn pursuant to the purchase of a vehicle. Landsbankinn is registered as the owner of the vehicle during the term of the contract while the customer is the vehicle's owner for tax purposes. At the end of the contract period, the customer becomes the full owner of the vehicle.

There are three financing options under vehicle contracts:

Non-indexed vehicle contracts with fixed rates

  • Up to 80% loan-to-value ratio
  • Maximum loan period is 7 years
  • Age of vehicle plus loan period max. 12 years*
  • Fixed interest for 36 months, currently 9.70%
  • Interest rates are listed in Landsbankinn's current tariff
  • Amortised loan

*The loan-to-value ratio drops to 50% if the vehicle is 10 years old or more.

One month before the fixed rate period ends, the borrower chooses whether to again opt for fixed rates for the next 36 month period at the available terms (charges are in accordance with Landsbankinn's tariff). If the borrower expresses no preference the loan automatically switches to non-indexed floating rates at the end of the fixed rate period.

Non-indexed vehicle contracts with floating rates

  • Up to 80% loan-to-value ratio
  • Maximum loan period is 7 years
  • Age of vehicle plus loan period max. 12 years*
  • Current interest rate is 9.15% for a 70-80% LtV ratio**
  • Current interest rate is 8.95% for LtV ratio below 70%
  • Interest rates are listed in Landsbankinn's current tariff
  • Amortised loan
*The LtV ratio drops to 50% if the vehicle is 10 years old or more.
**Special terms for members of Varðan or Náman as well as current customers of Vehicle & Equipment Financing.

Non-indexed vehicle contracts with floating rates

  • Up to 70% loan-to-value ratio
  • Maximum loan period is 7 years, less the age of the vehicle
  • Current interest rate is 7.80%*
  • Interest rates are listed in Landsbankinn's current tariff under vehicle and equipment financing
  • Amortised loan

Short-term loans

Overdraft

Overdraft credit is available on both debit and chequing accounts with Landsbankinn. Overdraft credit is a flexible advance type suited to meet temporary need for funds or finance short-term fluctuations in expenses.

Financially competent customers over 18 years of age can apply for overdraft credit, in accordance with the Bank's credit policy. Interest is only paid on used overdraft credit. No stamp duty or borrowing charges apply to overdraft credit.

Lower the overdraft

Reduce your overdraft is a service Landsbankinn offers customers who wish to lower their short-term debt, such as overdraft credit or payment card debt. You agree to pay a certain monthly amount towards the loan and we offer favourable interest terms. 

Debentures

Both inflation-indexed and non-indexed debentures are available. Non-indexed debentures have a term of up to five years while indexed loans cannot be granted for a period shorter than five years, according to law.

Interest rates and fees are in accordance with the Bank's current tariff.

Methane loans

Landsbankinn offers customers, who choose to have their cars converted to utilise methane, more favourable terms on overdraft credit than on traditional overdrafts. The aim is to assist customers in switching to more environmentally friendly and cheaper fuel.