How high will the early repayment penalty be?

Hello,
My wife and I bought a house in August 2019. The purchase price was 655k + additional costs. We took out an annuity loan of 496k at 1.04% interest with a term of 20 years. So far, we have paid off about 100k of that. The outstanding balance is therefore currently around 390k.
Unfortunately, we have now separated. Sooner or later, the cleanest solution will probably be a sale. The place is simply too big for one person. The value has probably increased since then, so it should provide a good starting capital for anyone.
Can you roughly estimate how much the bank will want as a prepayment penalty? Of course, I know I will have to have discussions about it, I just wanted to have an idea beforehand.
Regards,
Tobi

The bankers here in the forum will certainly comment on this in more detail, but I suspect it will come down to a "handshake." The bank would have to calculate a concrete loss, but with just over 1% interest that you have, it will not add up. A few euros processing fee may perhaps still apply.

Can you roughly estimate what the bank will want as an early repayment penalty?

Yes. It will be 0€.
A reinvestment interest rate of the capital (not to be confused with an alternative loan interest rate) for the remaining term is calculated. And since the reinvestment rate is definitely well above the current loan interest rate, no early repayment penalty will be charged.

By the way, you can also calculate this online. For example, at all consumer advice centers. It is not accurate to the € exactly, but always useful for cases like this (question about the amount of the early repayment penalty).

Yes. It will be at 0€. A reinvestment rate of interest on the capital is calculated (not to be confused with an alternative loan interest rate) for the remaining term. And since the reinvestment rate will definitely be significantly higher than the current loan interest rate, no prepayment penalty can be charged. By the way, you can also calculate this online. For example, at all consumer advice centers. It is not accurate to the euro, but always useful for such cases (question still about the amount of the prepayment penalty).

How does prepayment work with a direct bank if I have around 35k€ lying around and can pay off the loan completely? Full utilization was 02/2019. Yes, economically it doesn't make sense at an interest rate of 1.48%, I know

How does prepayment work with a direct bank if I have around €35k lying around and can pay off the loan completely? Full utilization was 02/2019. Yes, economically it doesn't make sense at an interest rate of 1.48%, I know

The bank must agree if no sale is involved. The question is whether the bank will bother with the effort for €35k.

The bank must agree if there is no sale. The question is whether the bank is willing to take on the work for €35,000.

That is correct. However, the bank may then charge at its reasonable discretion and is no longer bound by any legal regulations.
But...

Sooner or later, the cleanest solution will probably be a sale.

Otherwise, the original poster cannot repay the loan. Therefore, the question of whether the bank agrees is moot.