Lands­bankinn changes in­terest rates - fixed rates on hous­ing mort­gages un­changed

Variable interest rates on non-indexed housing mortgages increase by 0.20 percentage points (pp). Fixed rates on non-indexed housing mortgages are unchanged. Interest rates on inflation-indexed housing mortgages, both variable and fixed, are also unchanged.

Prime rates on non-indexed loans increase by 0.20 pp while prime rates on inflation-indexed loans are unchanged. Interest on non-indexed vehicle and equipment financing loans increase by 0.20 pp. Overdraft rates increase by 0.25 pp.

Interest on non-indexed savings account increase by 0.20 pp, interest on fixed rate accounts increase by 0.25 pp in most cases while interest rates on general current accounts are unchanged.

This interest rate decision of Landsbankinn follows the rate hike of the Central Bank of Iceland on 25 August, when the CBI raised rates by 0.25 pp. Interest rate changes also have regard for bond market yields and other financing terms of the Bank.

Landsbankinn's new interest rate tariff enters into effect on 1 September 2021. Changes to interest on loans governed by the Act on Consumer Loans or the Act on Housing Mortgages to Consumers enter into effect in accordance with notifications sent to customers in online banking.

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