Early closure fee charged on loans other than fixed interest loans drawn down from KOP bank prior to 1 January 1994
No early closure fee is charged on the premature repayment or payment of a loan tied to the base rate, the Euribor rate of the bank’s Prime rate.
An early closure fee is charged on a loan tied to a long market rate for a payment exceeding the repayment schedule during a loan interest determination period as follows:
- If the long market rate has fallen by more than 1.0 percentage points, the fee is 0.75% for each full year calculated from the payment date until the end of the current interest determination period; however, not more than 3%.
An early closure fee is also charged when the reference rate of a loan tied to a long market rate is changed in the middle of an interest determination period. The value of the long market rate is compared to the value of the new selected reference rate.
An early closure fee is charged only if the market rate prevailing on the payment date is over one percentage points lower than the market rate applicable to the loan.
No early closure fee is charged on loans intermediated out of government funds.
Advice on housing
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