In response to the uncertainty and natural disaster that has befallen Grindavík, Landsbankinn, Arion Bank and Íslandsbanki, working with the Icelandic Financial Services Association (SFF), have concluded an agreement to cancel interest and indexation on housing mortgages held by inhabitants of Grindavík for a period of three months. An agreement to this effect was announced yesterday evening, 22 November.
By cancelling interest and indexation for three months, we attempt to lighten the burden of our Grindavík customers who are faced with uncertainty about their income, expenses, housing and assets. The agreement between the three banks contributes to equal treatment of borrowers.
The cancellation applies to November and December 2023, and January 2024, and is limited to interest and indexation on total loans in the maximum amount of ISK 50 million. If a borrower has a loan or combined loans of over ISK 50 million, the cancellation is limited to interest and indexation on an ISK 50 million loan.
Part of a holistic solution
Last week, we announced that all our Grindavík customers could apply for six-month payment deferral on their housing mortgages. At the same time, we were working on further solutions, among which is a holistic solution in collaboration with the government, other financial institutions, pension funds and insurers. Cancellation of interest and indexation for a three-month period is part of such a solution which is expected to be presented in more detail in coming days.
Six-month payment deferral on housing mortgages
Payment deferral for a six-month period provides the people of Grindvík with financial leeway, as customers pay no instalments, interest or indexation on their housing mortgages during the period. Deferred interest is added to the loan twelve months after the deferral period begins and does not accrue interest for the first twelve months. The term of loan is extended to reflect the period of payment deferral. Customers can choose to shorten the deferral period at any time.
Applying for payment deferral in Landsbankinn’s app is simple and we have published further instructions here on our website.
We encourage all Grindavík customers to contact us if they have any questions about these solutions or want to review their finances. You will be warmly received in any of our branches, over the phone or remote meeting.
There is still a great deal of uncertainty about the future. We will continue to monitor developments closely and to support the people of Grindavík in various ways.