News and Notifications - Friday, July 23, 2010 10:17 AM

Work it out with Landsbankinn

Landsbankinn is taking steps to contribute to the "Work it Out" campaign initiated by Icelandic authorities and both sides of the industry to boost employment-generation in the near future.

In response, Landsbankinn has decided to offer customers two special credit products for fixed asset improvement, Improvement (Framkvæmdalán) and Good Work Loans (Lán til góðra verka).

Improvement Loans are long-term loans with the same terms as housing mortgages. Improvement Loans afford customers the opportunity to finance improvements to residential housing on good terms for longer periods. A borrowing charge, usually 1% of the loan amount, is not levied on the loans and the bank dispenses with all its other fees. The loans can amount to as much as 70% of the market value of the real estate.

Good Work Loans are lower loans with shorter terms. The maximum loan amount is ISK 2 million, interest is 2% lower than on non-indexed housing mortgages and there is no borrowing charge.

Deadline for Good Work Loan applications is 1 December. Until that time, no borrowing charge applies to Improvement Loans.

Work it Out is a campaign initiated by Icelandic authorities and both sides of the industry to boost employment-generating activities. Home improvers are entitled to a 100% repayment of VAT on contractors' wages and a tax deduction of up to ISK 300,000. Further information is available on www.allirvinna.is (in Icelandic).

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