Banks can take a commission. Judicial practice and explanations from “protecting citizens” bodies clearly prohibit banks from charging commissions with fines and other penalties for early cancellation, evenattentionif spelled out in the text of the loan agreement.
What does this mean?
Suppose you took a loan from time immemorial.When the bank “carefully” included in the contract the text of the direct obligation for the borrower to pay fees for the initial payment of the debt, thenthis is the part of the document that was declared invalid and if the bank takes such a commission from you, a fine or something else you will easily return the commission paid in court, and write a fine to the bank for violating the law. From the Mortgage Brokers London you will have the best options now.
So, most likely, the bank will not burden you with a commission like that. The only thing they can do under current law is to require in writing notifying the bank of their intentions within 30 days. This figure is now spelled out in the Civil Code, but we don’t see anything critical in waiting a month and then paying off debt. The most important pointthe requirement to notify the bank of the intention to repay the loan must be clearly stated in the same contract. So, if you don’t have such obligationsyou can safely repay the loan prematurely at any timethe provisions of the Civil Code regarding a thirty-day delay in this case do not automatically apply to your contract.
So, you decide to pay the debt in advance. If you plan to pay off some debtthis is where the fun begins. In theory, if the principal amount has decreased, the interest for using funds must decreasethat is, the bank must repeat the payment schedule for the contract. In fact, everything is not so trivial. There are three possible scenarios.
- The bank recalculates the payment schedulethis is ideal. The most important thing is that the new schedule must be made as an additional agreement for the contract and signed by the bank. Only this way and not any other waythere is no verbal agreement with the operator “can pay less now”.
- The bank will not change anythingyou will be offered to continue to pay also on the same payment schedule, you only have to complete the loan payment beforehand. Not a good optionthere will be an overpayment of interest. In the case of a mortgage, this option will not workthe payment schedule, as an integral part of the loan agreement, is registered with the appointment agreement in the registration room. Thus, the deposit from the apartment will not be deleted until you complete the payment schedule. So replacement of the payment schedule and subsequent registration in the registration room is mandatory.
In the case of full repayment of the loan, be sure to take from the bank a certificate that states that you have paid off the debt in full, have paid it well, and the bank has no complaints with you. Just in case. It will be useful. Step 5 (optional). After one or two months, ask for your characteristics in CIIand.