Payment holiday for mortgages

Arion Bank is seeking to help retail customers who think they may experience difficulties in making mortgage repayments due to COVID-19. Customers will be allowed to take payment holidays for up to three months to help them deal with any potential difficulties.

Mortgage repayments will be frozen for three months, i.e. repayments on the loan will not be required for three months after signing the agreement. The instalments and interest on the mortgage will be added to the loan principal. This means that the loan instalments will increase after the payment holiday is over.

The cost of registering each document is ISK 2,500. In order to amend the terms of the mortgage it is necessary to get the certificate of title to the property (veðbókarvottorð). The certificate of title to the property can be obtained in digital format from the District Magistrate (Sýslumaður) and costs ISK 1,055. Arion Bank does not collect any fees for the payment holiday and all costs are due to public fees.

Any further deferrals will be discussed on a customer by customer basis.

In light of the circumstances we encourage our customers to use digital channels to contact us. Please complete the form below and we will get in touch. 

Application for payment holiday