A bill currently before the parliament Althingi proposes that home owners in Grindavík will be able to sell their real estate to a state-owned company. The bill does not authorise the transfer of current mortgages on Grindavík homes to new housing, i.e. it will not be possible to transfer liens.
Same interest terms for equally high fixed-term loans
Customers who hold mortgages on Grindavík homes with Landsbankinn, who have fixed the interest rate on the loan for three or five years, will receive the same interest terms on an equally high new mortgage on new housing, provided the loan-to-value ratio is similar. The interest terms remain unchanged for the remainder of the fixed-rate period, which ends in accordance with the original terms of the loan.
No borrowing charge for first-time buyers
Landsbankinn has also decided that residents of Grindavík, who purchased their first home during the two-year period leading up to the evacuation of the town on 10 November 2023, will pay no borrowing charge on new housing mortgages - they will be considered first-time buyers.
Up to 85% loan
Another thing to note is that all home owners in Grindavík can borrow up to 85% of the purchase price of residential housing, just like first-time buyers. Debt service can be up to 40% of disposable income, in accordance with the statement of the Financial Stability Committee of the Central Bank of Iceland.
Happy to help
We recommend that anyone from Grindavík wondering how to approach the real estate situation contact us to review available mortgage options. It’s easy to make an appointment on the Bank’s website to chat with us over the phone, in a remote meeting or in person.
Further information is also available on our site dedicated to information for Grindavík.
