Arion Bank, Íslandsbanki and Landsbanki announced yesterday an interest rate hike on their loans following the recent Central Bank interest rate hike.
At Landsbankinn, floating interest rates on unindexed housing loans increased by 0.15 percentage points today. Fixed interest rates on unindexed mortgage loans remain unchanged, and rates on indexed mortgage loans, both variable and fixed, also remain the same.
The interest rate on Landsbankinn’s non-indexed loans for car and equipment financing was raised by 0.15 percentage points. The interest rate on overdraft facilities increases by 0.10 to 0.25 percentage points.
An increase of up to 0.25 percentage points
At Arion Bank, non-indexed floating rate mortgage rates will increase by 0.10 percentage points to 3.54%. Unindexed fixed three-year mortgage rates will increase by 0.15 percentage points to 4.35%.
Index-linked mortgage rates remain unchanged, but car loan rates will increase by 0.10 percentage points. up to 5.10%. The interest rate on overdraft and installments will increase by 0.25 percentage points.
Íslandsbanki is raising the floating rate for unindexed mortgage loans by 0.25 percentage points. Three-year fixed interest rates on non-indexed mortgages increase by 0.20 percentage points and for five years by 0.55 percentage points.
Ergo’s floating non-indexed interest rates and car loan rates are increasing by 0.25 percentage points. By 0.25 percentage points overdraft rates for individuals and businesses will also increase.
Interest rates on savings accounts were raised
Home loan rates have fallen sharply in the past fifteen months, along with historically low interest rates. Now there has been a change, but it is related to the fact that on May 19 the Central Bank announced that the interest rate will be raised by 0.25 percentage points, mainly in response to high inflation that is more sustained than expected.
Inflation is partly driven by the rise in house prices, which is believed to be partly due to lower interest rates and associated downward pressure on the real estate market.
The increase in interest rates also affects the interest rate on bank deposits.
Landsbankinn is increasing the interest rate on unindexed savings accounts by as much as 0.20 percentage points. The interest on fixed-rate accounts increases by 0.25 percentage points in most cases, while the interest on current accounts remains unchanged.
Arion Bank and Íslandsbanki are increasing interest rates on major savings accounts by 0.10 to 0.25 percentage points.
mmn / visir.is
Source: Yle