Prepay Credit Repayment: Mortgage and Consumer

Is interest due on early repayment of credit? When signing a credit agreement, we must be informed in advance of all conditions and parameters, be aware of the repayment schedule, with interest rate, and be aware of whether there is a penalty for early repayment of credit . See carfin.org.uk

An important clause in the contract is whether penalties and interest are payable for full or partial early repayment whether it is a mortgage, consumer, housing, corporate overdraft or student loan.

Under the conditions of dynamic economic conditions, it is quite possible to raise funds and be able to repay the loan early. In fact, we can save interest costs. Every borrower has the right to repay the loan early.

This right is regulated and explicitly mentioned in the Consumer Credit Act, banks and financial companies can not refuse to repay your credit ahead of schedule at any time .

According to your financial capabilities, you can repay the loan early or in full or in part . With all repayment, you liquidate your debt completely. When you partially repay you have the option of retaining the credit repayment term but reducing the amount of the repayment installment.

This way, you optimize your monthly expenses, reduce constant costs. The other option is to keep the amount of the repayment installment and to reduce the repayment term of the loan.

So, you will be able to cope faster with the credit you have withdrawn. With both options, you save interest and total credit costs.

We note that in the case of early repayment, the order is as follows: first, the penalty or penalty fee is paid if there are any pre-term repayments of the loan, then the interest due until now and finally the principal.

If your credit agreement is concluded at a floating rate or if it is in the form of an overdraft, the bank can not charge you a prepayment fee. Such a possibility is if you have signed a contract at a fixed interest rate and if there is no provision for a pre-term repayment clause without a fee.

For mortgage loans, given the larger size and length of the repayment period, the bank may charge you a prepayment fee, regardless of the type of interest rate, during the first 12 months of repayment of the loan. Whatever default you pay for early repayment of the loan, it will not be greater than the amount of interest you will save.

When applying for residential, mortgage or consumer credit, some banks and financial companies have also provided one-off fees for document processing, credit approval, and credit management.

These fees are paid initially at the start of the credit process and are not refunded by the lender for early repayment of the loan.

When you withdraw a loan, analyze the offers offered by banks and financial companies, with other indicators, choose a credit that does not have any early repayment fees to make sure you are able to repay early.

When refinancing loans , you repay old liabilities, make it early, so pay attention to the proposed conditions of the bank where your old debt is, whether to take the refinancing or to look for another lender on more favorable terms. In order to guide you.

 

We will point to specific creditors banks and financial companies with and without early repayment fees.

We will point to specific creditors banks and financial companies with and without early repayment fees.

 

Unicredit Bulbank
The General Conditions, under which the Bank provides mortgage loans, states that in the case of early repayment of the loan, the borrower owes a penalty of 1% of the prepaid amount of the loan if the early repayment is made before repayment of 12 monthly repayments from its utilization. This rule does not apply to early repayment of an overdraft secured by a mortgage, that is, no penalty is due here. For consumer loans with a fixed interest rate, the penalty for early repayment is 1% on the prepaid amount in favor of the creditor where the remaining period until full repayment is greater than one year and for a remaining period of less than one year 0.5% . In the case of consumer loans with a floating interest rate for the early repayment, no penalty (fee) is due.

United Bulgarian Bank
United Bulgarian Bank offers a consumer loan ranging from BGN 500 to BGN 20,000 and a repayment term of 6 to 60 months, with a fixed low interest rate with easy and fast application and grant procedure, without transfer of salary, without guarantors, only with personal map. There is a pre-term repayment charge – 1% of the prepaid principal when the remaining period of the credit agreement is longer than one year and 0.5% if the remaining period is less than one year.

Texim Bank
Texim Bank – Consumer loan up to 50 000 BGN or their equivalent in euro for adults and eligible Bulgarian citizens up to 68 years with approval up to 2 hours at variable annual interest rate, maximum repayment term up to 7 years, refinancing of liabilities to 10 years, repayment of equal monthly installments, flexible conditions / can be with a guarantor, can be translated into salary or with both /, free of charge for opening and servicing of the current account with debit card and without penalty for early repayment of credit .

First Investment Bank
First Investment Bank – Consumer loans: up to BGN 50,000 or their equivalent in euro, repayment term up to 10 years, only against identity card, no requirement for guarantors, repayment in equal monthly installments, prior approval up to 24 hours, fixed interest rate rate for the first year of the loan and variable for the remaining period, free of charge for online application, there is a fee for examining documents when applying to an office of the bank, there is no fee, a penalty for early repayment, the repayment is in equal monthly installments .

Vivus
Vivus – fully online application for fast loans from 50 to 1 300 BGN, approval for up to 15 minutes, free first loan up to 400 BGN, credit without guarantor and guarantors, you need to be a Bulgarian citizen for over 19 years, no fees for applying for money transfer, you may extend the loan term, you can withdraw extra money. If you repay the loan early, you do not owe fees and commissions. You pay interest only for the real time used for the funds.

Credit
Credisimo – online loans up to 2 500 BGN, without a day off, with possibility of refinancing, approval up to 7 minutes, repayment up to 24 months. You must be at least 18 years of age and have proven income, no guarantors are required. No additional charges or commissions are charged for early repayment. 30 days without interest for every first and fifth loan up to 600 BGN

Feratum
Feratoum – 24/7 online application for loans from 50 to 3,000 BGN, approval within 5 minutes, you receive the money the same day, with a grace period on repayment. Every first loan of up to BGN 700 returned within 15 days is interest-free. You need to be 18 to 70 years of age, have a registered address and income. A guarantor must also be required to meet certain conditions. You can extend the loan term, refinance, or take advantage of your offer for early repayment of a loan without penalties and charges.

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