Payment holiday for mortgages
Please note that it is no longer possible to apply for payment holiday
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 nine 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.
Arion Bank does not charge a fee for freezing mortgage repayments. Any costs paid are due to public fees. The cost of registering each document is ISK 2,500, or ISK 1,500 for electronically registered documents. In order to amend the terms of the mortgage we need to get the certificate of title to the property (veðbókarvottorð) from the District Magistrate (Sýslumaður) on your behalf, which costs ISK 1,055.
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.
Payment holiday for mortgages extended
Customers who have lost their jobs, had their incomes reduced or who have suffered illness can extend the mortgage payment holiday by up to six months. Existing payment holidays can be extended by up to three months and situation will be re-evaluated at the end of that period, as necessary.
Already have Payment holiday and request extension