Special repayment

Special repayments are repayments that exceed the payment installments agreed in the loan agreement.

Germany

Upon conclusion of a loan agreement in the contract with the will bank or in the general terms and conditions the maximum frequency and amount of unscheduled without prepayment penalty agreed. In addition, they are only possible with the approval of the credit institution and, if approved, result in early repayment penalties.

Building societies allow special repayments of any amount at any time without a prepayment penalty.

At other banks it is customary to grant special repayments of up to three, five or ten percent of the original loan amount per year or a maximum of 30 percent or 50 percent of the loan amount during the fixed interest period.

With an annuity loan, special repayments lead to a shortening of the loan term until full repayment . The interest included in the installment is calculated on the basis of the remaining debt at the end of the previous period and the special repayment thus reduces the remaining debt by the amount of the special payment. This means that the pro-rata interest rate will be lower in the following period and the repayment rate will increase.

Web links

• Construction financing - Legal framework on the website of the consumer advice center NRW

Individual evidence

1. ↑ Bausparen: Build safely on peak interest rates. In: test.de . Stiftung Warentest , November 22, 2005, accessed on May 8, 2014 .