Permit for mortgage (a change in the order of priority of mortgages)

A permit for mortgage is a permission from HMS to move a loan from another credit institution ahead of our loan in the mortgage order. This may be necessary for example when refinancing an outstanding loan or acquiring an additional loan.

Conditions:

• A permit for mortgage is granted for housing improvements, not for the refinancing of other non mortgage debts.

• The total loan amount on the property may be a maximum of ISK 44 million.

• The total loan amount on the property may not exceed 80% of the market value.

• Borrowers must be registered property owners.

Loans that are not eligible for a permission for mortgage

• Loans from Byggingarsjóður verkamanna.

• Loans for rental housing or co-operative building association housing.

• Loans for rural areas

• Currency loan.

Application

When you have applied for a new loan from another credit institution you submit an application for a permit for mortgage.

Supporting documents:

• A loan commitment or a copy of the new loan.

• If the new loan and the HMS loan exceed 80% of the property value, an appraisal from a real estate agent is required.

• Information on the disposal of the loan amount.

• If you take out an additional loan, you must submit a copy of a detailed credit assessment.

• If a loan is to be paid up you must submit confirmation of the balance of that loan.

A HMS loan advisor will be in touch shortly by email, confirming receipt of the application and requesting further information if needed.

A permit for mortgage approved

• When the documents are ready you will receive a notification by email.

• You come to our office in Borgartún 21, Reykjavík, sign the documents and then take them to the District Commissioner’s office (Sýslumaður) for registration (þinglýsing).

• When a new order of priority of mortgages has been registered you pick the documents up at the District Commissioner’s office (Sýslumaður) and bring them back to HMS.

• The cost of the change of terms is added to the next instalment of the loan.

Cost:

• Permit for mortgage 5.500 ISK

• Registration fee at the District Commissioner’s office (Sýslumaður) ISK 2.700