The dramatic events of the past couple of days in the presidential race have not discouraged average Icelanders from entering the race. The latest person to declare his candidacy is a 46 year old construction worker, Magnús Ingberg Jónsson.
Magnús, who lives with his family in the town of Selfoss in South Iceland told the local news site visir.is that the main reason he is running is his hope to change how interest rates on home mortgages are calculated.
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Most mortgages in Iceland are indexed to the consumer price index, effectively meaning the loans carry a variable interest rate, where the interest rate is tied to the consumer price index rather than some other measure, like LIBOR rates. During the early years of paying back the loan the idexed component is added to the principal of the loan, which means that during times of inflation the principal can rise, despite the debtor having made regular payments.
Magnús believes it is crucial to change this, but feels the political elites have failed to address the issue. Abolishing the indexation of home mortgages is therfore his number one campaign issue. A second campaign issue for Magnús is to ban lenders from lending more than 80% of the value of the property. However, the president of Iceland has no political power over home mortgages, or legislation governing how home mortgages are structured.
Magnús is also opposed to the European Union.
The dramatic events of the past couple of days in the presidential race have not discouraged average Icelanders from entering the race. The latest person to declare his candidacy is a 46 year old construction worker, Magnús Ingberg Jónsson.
Magnús, who lives with his family in the town of Selfoss in South Iceland told the local news site visir.is that the main reason he is running is his hope to change how interest rates on home mortgages are calculated.
Read more: Local Hamburger chef announces a presidential run, promises supporters free cheeseburgers
Most mortgages in Iceland are indexed to the consumer price index, effectively meaning the loans carry a variable interest rate, where the interest rate is tied to the consumer price index rather than some other measure, like LIBOR rates. During the early years of paying back the loan the idexed component is added to the principal of the loan, which means that during times of inflation the principal can rise, despite the debtor having made regular payments.
Magnús believes it is crucial to change this, but feels the political elites have failed to address the issue. Abolishing the indexation of home mortgages is therfore his number one campaign issue. A second campaign issue for Magnús is to ban lenders from lending more than 80% of the value of the property. However, the president of Iceland has no political power over home mortgages, or legislation governing how home mortgages are structured.
Magnús is also opposed to the European Union.
