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.
Applications for new housing loans
The Bank nevertheless considers that the Supreme Court ruling gives cause to review the terms on variable rates in new housing mortgages. An update to the Bank’s housing mortgage products will be announced in the coming days.
Applications for new housing mortgages are received on the Bank’s website and app. An advisor contacts applicants to review the next steps.
Landsbankinn’s interim financial statements for the second quarter of 2025 provides 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.
This statement has been updated.
