In the field of mortgage lending, a new trend is emerging: An increasing number of banks are beginning to equip their loans with a so-called exit option. Such an option gives borrowers the right to terminate their loans prematurely, subject to certain conditions.
The termination can be done before the end of the agreed term
Until now, real estate owners have had a hard time getting out of their loans. The first difficulty is that an early termination is rarely possible – in very few exceptional cases, the termination can be done before the end of the agreed term.
At the same time, in most cases the payment of a prepayment penalty is required, which can quickly amount to several thousand euros.
These options are extremely interesting
The exit options, which are offered by more and more banks (mainly direct banks), solve the problem: Firstly, the exit can be done much more straightforward, secondly, no prepayment penalty must be paid.
Therefore, these options are extremely interesting, especially as it has been noted for years that more and more owners feel the desire to prematurely wind up their funding.
In most cases, it is job-related moves and divorces that lead to such a situation.
Some banks rule out divorce as a hardship, so the option can not be used in this case
However, the options can only be used if a conscious selection is made in advance. For example, some banks rule out divorce as a hardship, so the option can not be used in this case.
In addition, there are often additional costs: Some banks charge a lump sum (which is often charged to the loan amount) or borrowers have to accept an interest charge.
Therefore, it is important to be well informed about a degree.