Homeowners Say Mortgage Report Is Faulty Skip to content

Homeowners Say Mortgage Report Is Faulty

The Interest Association of Households (HH) has declared that the University of Iceland’s Institute of Economic Studies’ report which was published last week, concluding that the banks cannot afford any more general write-offs of mortgages to homeowners, is faulty.


From Reykjavík. Photo by Páll Stefánsson.

HH had requested that the government enable a write-off of 18.7 percent. In response, the government had the report carried out, which concluded that such a move would cost Icelandic taxpayers more than ISK 200 billion, Fréttablaðið reports.

HH claims that the authors of the report did not take into account the combined ISK 172.5 billion (USD 1.4 billion, EUR 1.1 billion) profits of the new Icelandic banks from October 2008 to October 2011.

This opinion is also supported by others, including MP for the Movement Margrét Tryggvadóttir who told RÚV that in her view, the banks have more flexibility for write-offs.

HH concludes that neither the government nor the financial system will make further efforts towards solving the mortgage crisis homeowners in Iceland are facing, and assistance cannot be expected from the “university elite” or the pension funds either.

Therefore HH will turn to President of Iceland Ólafur Ragnar Grímsson with a petition of 37,000 signatures of people who support the association’s demands of mortgage corrections and the abolishment of indexation.

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