Early repayment

If you signed your loan contract after 16 June 2019, when Law 5/2019 came into force, you may at any time repay early all or part of your outstanding debt. This is provided you notify the bank within the time period agreed with it, which may not exceed one month.

Once you notify the bank that you intend to repay all or part of the loan early, the bank should provide you, within three working days at most, with the necessary information for you to be aware of the consequences of your decision.

Also, if you acquired insurance with your loan, it will, unless you state otherwise, be cancelled when you repay the loan.

You may also agree to compensate the bank for the financial loss it may incur, with the following limits:

  • Variable interest rate loans: 0.15% during the first five years or 0.25% during the first three years.
  • Fixed rate loans: 2% during the first ten years and 1.5% thereafter.
  • Conversion from variable to fixed rate through subrogation or amending novation: 0.15% during the first three years. This limit will apply regardless of when the contract was entered into.

 

 

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