Variable interest rates on non-indexed housing mortgages increase by 0.20 percentage points (pp). Fixed rates on new non-indexed 36-month mortgages increase by 0.15 percentage points and fixed rates on new non-indexed 60-month mortgages by 0.10 pp. Interest rates on inflation-indexed mortgages, both variable and fixed, are unchanged.
Prime rates on non-indexed mortgages increase by 0.20 pp while prime rates on inflation-indexed mortgages are unchanged. Variable interest on non-indexed vehicle and equipment financing loans increase by 0.20 pp while interest rates on indexed loans remain the same. Overdraft rates increase by 0.25 pp.
Interest on non-indexed savings account increase by 0.15-0.25 pp, interest on fixed rate accounts increase by 0.15-0.25 pp 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 6 October, 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 19 October 2021. Changes to interest on loans governed by the Act on Consumer Loans or the Act on Mortgage Lending to Consumers enter into effect in accordance with notifications sent to customers in online banking.