HFF reduces cost of mortgages in Iceland

Categorized | General, Iceland, MBL, Society

HFF reduces cost of mortgages in Iceland

Posted on18 June 2009. Tags: housing, Iceland, interest rates, loans, mortgages

Interest rates charged by Iceland’s Housing Finance Fund were reduced by 0.1 percent this week. The state-run mortgage fund now charges 4.6 percent on loans with a prepayment clause and 5.1 percent on loans without. The Fund’s interest rates were last lowered by 0.2 percent in May.

4 Responses to “HFF reduces cost of mortgages in Iceland”

Jim says:

June 18, 2009 at 12:48 pm

With mortgage rates of only 4.6%, I wonder if Icelandic banks will start offering cheap mortgages to foreign customers, eg Iceloan?…
mortgage loans web says:

March 10, 2010 at 9:50 am

Iceland has been hard during the financial crisis so it’s a good sign when they reduce interest rate as it shows that they want new customers to get mortgages and make sure the current customers don’t go bankrupt and foreclose.
Knowless says:

March 10, 2010 at 2:25 pm

Jim says:
June 18, 2009 at 12:48 pm
“With mortgage rates of only 4.6%, I wonder if Icelandic banks will start offering cheap mortgages to foreign customers, eg Iceloan?…”

The interest rate is reasonable but it’s the the complicated cryptic add-on index link to inflation which makes it the immortal loan, immune to off-payments.