Solutions to temporary payment problems
If you are having temporary payment difficulties, for example due to illness, accidents or unemployment, and you are not able to make a payment agreement, we have a few solutions.
You can:
postpone payments
restructure your loan (add the debt to the principal amount)
extend the loan term
Conditions
The payment problem is due to unexpected temporary difficulties such as illness, accidents, reduced income, unemployment or other unforeseen events.
Your other lenders also agree to assist.
Your payment burden (according to your credit rating) is higher than your ability to pay, or is expected to be.
You have the payment ability that fits the solution in question.
Application
You apply on HMS My pages. In the application you can tick in the box for the solution you think you need, but a consultant will ultimately assess which solution is suitable in each case.
Supporting documents
Confirmation of a temporary problem, for example a medical certificate or confirmation of unemployment.
A statement of why you need the solution and how you think it will help.
Following the application you will need to undergo a credit rating.
An HMS advisor will assess which solution is best suited to your circumstances. The case will then be submitted to the HMS Loan and Housing Benefits Committee, which makes the final decision. Once a decision has been made, it will be sent to your digital mailbox on island.is.
Application approved
You will receive an email when the loan documents with the new terms are ready.
If there is a loan on the property with a back lien (from another credit institution), that credit institution must sign for its agreement to the change of terms.
Once the documents are ready, you can collect them during opening hours at the HMS office at Borgartún 21. You can also request to have the documents sent by post if you live outside the capital region.
When the loan documents have been registered at the District Commissioner’s office (Sýslumaður), you return them to HMS and the change of terms will be processed.
Cost
Registration fee at the District Commissioner’s office (Sýslumaður)
Application denied
If your application for assistance with payment difficulties is rejected, the decision will be sent to your digital mailbox on island.is. If new documents or information become available, you may request that your case be reopened.
If you believe the decision is incorrect, you may appeal it to the Welfare Appeals Committee (Úrskurðarnefnd velferðarmála).
Service provider
Housing, construction and planning authority