Early closure fee charged on fixed interest loans drawn down from KOP bank during 8 March 1991 - 1 January 1994
The borrower of a fixed interest loan is entitled to call in the loan partially or in full throughout the loan period before the due date by paying an annual early closure fee of 1.25% on the called in amount from the payment date until the end of the loan period.
However, the early closure fee cannot be more than 10% of the called in amount of loan.
No early closure fee is charged if the prevailing market price for the loan period remaining on the payment date is higher than the interest rate applicable to the loan.
Advice on housing
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