On 14 October 2025, the Supreme Court of Iceland delivered a judgement concerning terms on variable interest rates in an Íslandsbanki housing mortgage loan.
The Supreme Court has yet to rule in a case brought against Landsbankinn that concerns a similar dispute. The cases are not identical in all respects, including as concerns the wording of the terms on variable rates, circumstances and cause of action. At this time, Landsbankinn considers need for clarification and the conclusion of the Supreme Court about certain issues in the above-mentioned proceedings against the Bank in order to determine interest rate changes made under similar loan agreements by the Bank.
The Bank nevertheless considers that the Supreme Court ruling gives cause to review the terms on variable rates in new housing mortgage loans. New housing mortgage applications will be halted until after the weekend and the Bank will work with customers to process current loan applications.
Landsbankinn’s interim financial statements for the second quarter of 2025 provide information about the Bank’s preliminary assessment of the potential financial impact on the Bank should the final court ruling in those cases be unfavourable to the Bank. The Bank will review its assessment in its financial statements for the third quarter, to be published on 23 October 2025.
