Bank: Termination of the mortgage loan within the fixed interest period?

  • Erstellt am 2013-05-12 23:38:05

HBFrage

2013-05-12 23:38:05
  • #1
The following scenario:

A mortgage loan with a fixed interest rate for 20 years. The borrower may terminate after 10 years, but what about the bank, is it allowed to do so without an important reason (e.g. payment default)?
What happens if the bank sells the mortgage including the collateral? Is the new owner allowed to terminate within the fixed interest period?
Thanks for the info
 

nordanney

2013-05-13 09:26:28
  • #2
Clear answer: NO! ==> see Building Code §489 (special termination right of the BORROWER) However, the bank may terminate if there is an important reason (e.g. payment arrears). But this has nothing to do with the termination right after 10 years. It applies regardless of who is the creditor of the claim.
 

Similar topics
20.05.2013Question: 1% repayment and 10 years fixed interest rate. Will the house never be paid off?13
29.07.2014Fixed interest period and loan term for 10, 15, or 20 years?12
27.10.2014Fixed interest rate financing without equity?20
11.07.2016Interest rate fixation - financing assessment23
05.09.2017Finance land/house separately - fixed interest rate11
31.07.2018For how many years of fixed interest period would you currently finance?57
02.07.2019Financing with a 35-year fixed interest rate52
21.06.2019Larger loan with only 5 years interest fixation14
14.12.2019Fixed interest rate for the entire term or only 10 years?52
08.04.2020Early repayment after the fixed interest period expires22
12.03.2021What is the interest rate lock period in construction financing?92
17.06.2021House purchase - Is the fixed interest rate realistically estimated?11
14.02.202210 or 17 years fixed interest rate on a 250k loan?24
29.09.2022High interest rates with fixed interest, alternative flex loans?54
17.12.2022End of fixed interest period 2027 - increase repayment or other options?33
13.01.2023Forward loan, special termination, fixed interest rate, experiences?12
22.02.20233 years fixed interest rate - Which banks do this?13
29.04.2023Interest rate fixation 10 vs. 15/20 years14

Oben