What is refinancing?

Refinancing means taking out a new loan to repay an existing loan.

• The new loan can be indexed, non-indexed, or a combination of both.
• Íslandsbanki offers refinancing of up to 70% of the property's official valuation.
• Existing Íslandsbanki mortgages can be refinanced regardless of the current loan-to-value ratio.
• Before refinancing, it is worth checking whether your existing mortgage is subject to an early repayment charge.

When might refinancing be a good option?

Refinancing can be a good option when your circumstances change or when you want to make changes to your mortgage.

You may wish to refinance if you would like to:

• Reduce your monthly repayments by extending the loan term.
• Repay your mortgage more quickly by shortening the loan term.
• Benefit from new interest rate terms that may be more favourable than those available when you originally took out the loan.
• Change the type of loan, for example from an indexed mortgage to a non-indexed mortgage, or vice versa.
• Consolidate multiple loans into a single loan to simplify your finances.
• Benefit from an increase in your property's value, resulting in a lower loan-to-value ratio.
• Adapt your mortgage to changing circumstances, for example if your income or financial situation has changed.