You are paying a mortgage, but it seems to you that the competition offers better conditions. And the end of fixation on your mortgage is still in sight. Advice on how to save 1% fee.
The mortgage you are repaying will fix the fix in a few months to years. If you would like to refinance it, there is a 1% early repayment fee. However, you can avoid the early repayment fee, or we know how it can be compensated.
Mortgage refinancing and bank campaigns
Some lender can reimburse you for early mortgage repayment if you bring it to them. In addition to giving you a lower interest rate, you may get better service and you won’t be lost at the cost of leaving lender. Most banks reimburse the early repayment fee in the case of a net refinancing of the mortgage with a maximum non-purpose increase of up to 5% of the loan balance and at the same time up to a maximum of USD 2,000.
Mortgage refinancing with an increase
But what if you need to refinance your mortgage with an increase? Do you need to increase your mortgage to pay out more loans, to renovate, build a house or for any other purpose that is not at all related to housing? Even in such cases, we can advise you on how to save a 1% early mortgage repayment fee at the original bank. Some lender can reimburse you for early mortgage repayment even if you raise. There is also a bank that does not overpay the early repayment fee in the current campaign, but will reimburse you up to 3 installments of the new hypo loan. Clients are entitled to this benefit when refinancing a mortgage and its combination with a consumer loan.
Real saving of 1% fee for early repayment of the mortgage
There are very many cases where a client can save a fee for early repayment of a mortgage outside the fixation period. But the practice is that even if the client does not save on the fee, because it does not meet the conditions for payment of the early repayment fee, not all lender realistically charge the whole 1% when paying the mortgage.
The law does not require banks to charge the above 1%, but only the current costs associated with early repayment of the mortgage, up to a maximum of 1% of the current loan balance. Ie. that often if you need to refinance your mortgage to another lender you don’t actually have to pay the maximum fee. We have often seen lender give our clients a penalty for early repayment far below the statutory maximum of 1%
If you need to refinance your mortgage to another lender, with or without an increase during the fixation period, mortgage specialists can help you save an early repayment fee. At the same time, they will seek to make the transfer of your mortgage the most advantageous for you, taking into account all the parameters of the new loan, whether the interest rate or other conditions and fees in the new bank.