BA have very good deals from Gatwick and you can searc for accomodation there. Icelandexpress has inexpensive fares but they fly out of Stanstead and it can be a pain getting there (depending on where you live of course). Icelandair goes from Heathrow, is slightly more expensive than BA on the best deals but sometimes have great offers if you sign up for them. A bargain is something not easily found in Iceland although you might be surprised to find that some things actually are cheaper there than in the UK (cigarettes, shaving eqipment, dry food etc). Icelandair usually offers quite good package deals, flights and hotels. Sign up for their lucky fares and you might get some unbelievable offers. The accomodation can be very expensive so it pays to look for a good deal. Both Icelandair and BA have some hotel offers on their website. What kind of accomodation are you looking for? Do you plan to stay in Reykjavik or travel around? If you need more info or help finding cheap accomodation, email me and I'll see what I can find.