When do you receive a penalty interest?

The interest rates are historically low. Chances are that you will pay a much higher interest rate for your current mortgage. Re-skipping can save a lot of money.

You will receive a penalty interest from your mortgage provider if you decide to transfer your mortgage to another provider. Penalty interest can also be charged if you want to repay extra money to lower your mortgage amount. You can repay 10 to 20% of the mortgage each year without penalty. If you exceed this percentage, a penalty interest will be charged. To partially compensate your calculated interest income, you pay the mortgage lender a penalty interest rate. The amount of the fine varies per situation. The fine can be requested from the bank where your mortgage is placed.

Finance penalty interest

Paying the penalty interest in one go is cheaper than paying in installments. If you cannot pay the amount of the fine with your own money, then taking out a loan is an option to pay the penalty interest. You can take out a Personal Loan or a Standing Credit with us. For this loan goal we recommend a Personal Loan for a maximum of 10 years. You can repay this loan without penalty so that the loan is fully paid off earlier.

You can also increase your mortgage to pay the penalty interest. A personal Loan, however, has a few advantages compared to raising the mortgage:

  • the term of a loan is shorter. This means you pay less interest and the total costs are lower.
  • you do not pay any closing and advisory fees for taking out a loan. When raising a mortgage, you pay closing and notary fees


Financing your penalty interest with a Personal Loan gives you a tax benefit: the penalty interest to be paid is tax deductible once. The net amount that you have to pay in total is therefore lower thanks to this tax benefit. For example, if you are in the wage scale 42% and your penalty interest is € 15,000, you will receive a one-off return of approximately € 6,300.

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