While we prefer to call it an ‘early repayment charge’ instead of a ‘prepayment penalty’, this latter term is still often used. It is the fee a mortgage provider charges when you repay your mortgage before the agreed date, such as when you refinance your mortgage.
"}},{"componentType":"sectionTitle","title":"Why ‘prepayment penalty’ is actually an odd term"},{"componentType":"paragraph","richBody":{"value":"It’s actually more a kind of compensation you pay the mortgage provider to cover the interest income they miss out on. Instead of ‘prepayment penalty’ or ‘remortgaging penalty’, it’s better to use ‘early repayment compensation’, ‘repayment charges’ or our preferred term early repayment charge.
"}},{"componentType":"sectionTitle","title":"Want to calculate your prepayment penalty or early repayment charge?"},{"componentType":"paragraph","richBody":{"value":"Call your current mortgage provider. As soon as you know how much it will be, use this calculation example to get a rough idea of your payback period. In other words, how long it will take for you to recover all the remortgaging charges through your lower monthly payments.
"}},{"componentType":"paragraph","title":"Tip 1: Avoid paying a prepayment penalty or early repayment charge","richBody":{"value":"There are several mortgage providers that will let you remortgage free of charge three months before the end of your fixed-rate period. This is sometimes also referred to as ‘no-penalty remortgaging’. Ask your current mortgage provider if this option is available to you as well.
"}},{"componentType":"paragraph","title":"Tip 2: Find out if it’s tax deductible","richBody":{"value":"If you use tax relief on mortgage interest, you can deduct the prepayment penalty or early repayment charge from your taxable income on your tax return as well.
"},"textLinks":[{"url":"https://www.belastingdienst.nl/wps/wcm/connect/nl/koopwoning/content/boeterente-aftrekken-bij-oversluiten-hypotheek","text":"Read more on Belastingdienst.nl (Dutch)"}]},{"componentType":"paragraph","title":"Tip 3: Get an instant idea of whether refinancing your mortgage might be worthwhile for you","richBody":{"value":"Whether refinancing your mortgage is the right move depends on your personal situation. Take the free 1-minute check to see if switching to ING could make financial sense for you. After all, who wouldn’t want to lower their monthly payments?
"},"textLinks":[{"url":"/particulier/hypotheek/oversluiten/oversluittest","text":"Do the free refinancing a mortgage test"}]},{"componentType":"cta","textLink":{"url":"https://www.ing.nl/particulier/hypotheek/contact/oversluiten?subscrid=cmnl-mort-oversluiten","text":"Discuss your options"}}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","title":"Good to know","richBody":{"value":"The English text of the website is a translation of the Dutch original version. This translation is intended for the customer's convenience only. In case of any discrepancies between the two versions, the original Dutch version shall prevail. The mortgage offer and contract will be signed in Dutch. Also, all further communication after signing the mortgage contract will be in Dutch. You acknowledge and accept this. If any assistance or clarification is needed, we recommend contacting your mortgage advisor or to call our customer service via the ING app.
"}}]}}}