Termination Instead Of Revocation Of Old Loan AgreementsLoans
Many property owners are currently working on the question of whether they should revoke their existing mortgage lending. In many cases, this possibility exists because a few years ago many banks made the mistake of not informing their customers correctly about the possibility of withdrawal.
Tip: get advice from the legal expert
However, many borrowers are unsure, they do not know if they can actually withdraw effectively. Therefore every single loan contract should be checked by an expert. In this context, we recommend the HPG Law Firm.The lawyer advises interested borrowers in an advisory capacity. He is a specialist lawyer for construction and architects law and is well versed in the topic of loan revocation. He also likes to check your old contract.
Added to this is the time pressure. In the past week, the federal government passed a law restricting the possibilities of revocation. Affected are loan agreements concluded between 2002 and 2010. The so-called old contracts can be terminated due to the law only up to and including 21 June this year.
Termination instead of revocation
Significantly easier than a revocation is the termination of old loan agreements. What many borrowers do not know: Once the loan has been disbursed more than ten years ago, they are entitled to terminate the loan. In other words, if the period of notice of six months is adhered to, an exit from the financing can be made at any time.
Never before has the number of private borrowers who can withdraw from their contracts by giving notice prematurely been so great. The reason is the trend towards longer fixed interest rates. More than ten years ago, mortgage rates were considered cheap, which is why many builders and buyers deliberately opted for long-term fixed rates. From today’s point of view, this is a nuisance, because at that time it was not foreseeable that market interest rates would fall even lower.
Possibility of early withdrawal from financing without having to pay..
The possibility of early withdrawal from financing without having to pay a prepayment penalty is extremely attractive. Many borrowers have the opportunity to suddenly lower their interest burden and thus significantly accelerate the repayment of their remaining debt. If you too are concerned and therefore want to know more about your options, do not hesitate. Make an inquiry, our financing experts advise you free of charge and without obligation.