Jón paid off his loan for 22 years – now owes twice as much and gets an award from the bank

Jón (58) from Hafnarfjörður took out a 20 million króna index-linked loan in 2004 to buy a terraced house in Setberg. Since then he has paid it at the start of every single month, 264 times in all, without missing a single payment.

Today the loan stands at 41 million krónur.

“At first I thought it was a mistake,” says Jón. “Then I phoned the bank and the customer adviser congratulated me. She said it was one of the best results she had ever seen.”

Last week Jón received a letter from the bank, printed on heavy paper in gold lettering, informing him that he had been admitted to the bank's Platinum Group, reserved for customers who have “grown with their loan”. The letter came with an invitation to a gala dinner. Jón pays for the meal himself, but the amount is added to the principal.

The bank's spokesman says Jón's case shows the strength of Iceland's lending system. “Verðtrygging means price insurance, and it does exactly that. It insures,” he says. “The question has just never been whom.”

According to the bank's repayment schedule, Jón will make his final payment in 2044, at the age of 76. The outstanding balance will then be 63 million. The bank has suggested the loan be passed on to Jón's children, who have not been asked.

An economist Mysan spoke to says it is important to look at the bigger picture. “If Jón had paid nothing, the loan would have grown even more. So in fact he has saved a great deal.” He was unable to explain where those savings were being kept.

Jón takes it all calmly. “My wife sometimes says the loan is the third party in our marriage,” he says. “She's right. It gets a bigger share of my salary than she does.” Jón has now asked for the loan to be registered as his next of kin.