Addi­tional loans

Our additional loans or second mortgages are suitable for individuals who choose to take out a mortgage with a pension fund but need extra borrowing to purchase a property or refinance.

The loans are non-indexed, with current rates listed in the Bank’s interest table.

You can borrow up to 80% of the purchase price when buying a property and up to 70% of the property valuation when refinancing (a second mortgage). Applicants must meet the Bank’s lending criteria and pass our review of their creditworthiness. Mortgages exceeding ISK 75 million are subject to special terms.

Before applying, we need to assess your credit rating. Select Other Loans as your reason, and our loan services team will contact you soon. You can also book an appointment with a personal advisor or contact us directly, and we will review your financial situation in person. The loan calculator can help you estimate how much you might be able to borrow.

 

Can I apply for an additional loan?

  • Individuals looking to purchase property or refinance an existing loan who decide to take out a mortgage with a pension fund and require additional borrowing can apply for an additional loan with us.
  • Before submitting your loan application, we need to assess your credit rating. Select Other Loans, and once your creditworthiness is reviewed, our loan services team will contact you.
  • Each application is assessed based on the applicant’s eligibility and the property valuation. Credit checks are conducted by retrieving information from Creditinfo, the local credit reference agency.
  • The mortgages have non-indexed base rates according to our interest table, with an interest margin of up to 1.5% (for the maximum mortgage) and a maximum loan term of 20 years.
  • Specific rules apply regarding the proportion of monthly repayments relative to net income: repayments must not exceed 35% of net income, or 40% for first-time buyers. For this calculation, minimum interest rates and standard loan terms are used: 3% interest with a maximum term of 25 years for indexed loans, and 5.5% interest with a maximum term of 40 years for non-indexed loans.
  • The maximum loan is determined by the combined fire insurance and property valuations and cannot exceed their total by more than ISK 10 million.