Iceland is a place I have considered, not liking the heat, somewhere like Iceland would be ideal for me. I think you need to show proof that you can support yourself, think your meant to have just over 1k a month.
I think you need to do a bit more research on iceland before going ahead with such a move unless of course you have lots of money in which case it should not be a problem.
Cost of one portion of fish and chips to take out.......£ 15
Cost of alcohol much higher than here. There are websites where you can compare prices to the UK.
And you will have some months when you get few hours of daylight, very depressing prospect for some people.
Sure it's a nice place for a holiday, great scenery and a dip in the Blue Lagoon is a must but live there ? Think very carefully about that