Variable interest rates on non-indexed housing mortgages increase by 0.70 percentage points (pp), to 5.40%. Fixed rates on new non-indexed housing mortgages increase by 0.10-0.15 pp. Interest rates on indexed housing mortgages do not change, neither variable nor fixed rates.
Prime rates on non-indexed lending increase by 0.70 pp while prime rates on inflation-indexed lending remain unchanged. Variable rates on non-indexed vehicle and equipment financing loans increase by 0.70 pp. Overdraft rates increase by 1.0 pp.
Interest on non-indexed savings accounts increase by up to 1.0 pp and interest on general current accounts increase by 0.10 pp.
This interest rate decision of Landsbankinn follows the decision of the Central Bank of Iceland on 4 May to raise rates by 1.0 pp. Interest rate changes also have regard for market rates and other financing terms of Landsbankinn.
Landsbankinn's new interest rate tariff enters into effect on 17 May 2022. 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.