Non-Indexed Mortgage
The payments are initially higher but you can own your home sooner with a Non-Indexed Mortgage.
The payments are initially higher but you can own your home sooner with a Non-Indexed Mortgage.
You can pay your mortgage off sooner because the full cost of the mortgage is paid every month
Payments are initially higher than those on indexed mortgages
You can choose between a mortgage with a variable rate or a mortgage with a fixed rate for the first 3-5 years
A mortgage covering 70% of your property value can be paid over a 40 year period and an additional mortgage covering up to 80% can be paid over a period of 25 years
You can choose between two types of non-indexed mortgages. The interest on our traditional non-indexed mortgage is calculated each time, according to the bank's interest rate table whereas our fixed rate mortgage offers a fixed interest rate for the first 3-5 years.
Variable rate | Fixed rate |
Payments vary according to the interest rate each time | Payments are stable |
Interest rates depend on the bank's financing costs and market conditions | Fixed rate for a 3-5 year period. Interest rate becomes variable once fixed rate period is complete |
Pay off the mortgage without paying any fees | You pay a fee if you pay off the mortgage during the fixed rate period |
Our interest rate roof option offers our non-indexed customers a safety net when interest rates rise.
Why should I apply for an interest rate roof?
Lending period
The mortgage lending period ranges from 5 to 40 years and you can also apply for an additional mortgage with a 25 year lending period.
You can choose between even payments on the principle amount and even payments.
Mortgage fees
What is prepayment?
You can prepay your mortgage or pay more into your mortgage whenever you like but you might have to pay a fee.
Do I need to pay a prepayment fee?
Fixed rate mortgages charge a prepayment fee if the amount is prepaid during the fixed rate period. There is no fee for variable rate mortgages. The fee is charged in accordance with the bank's price list each time.
You can pay an additional ISK 1 million into your fixed rate mortgage each year without paying a fee
Non-indexed loans are converted to variable interest rate loans at the end of the fixed interest period, and the prepayment fee is waived.
You can apply for a mortgage if you fulfil the following criteria: