Finance your penalty interest with a personal loan? We are happy to advise you about the possibilities. If the mortgage interest rate is very low, it can be very attractive to have your mortgage transferred. However, a mortgage lender may charge penalty interest if you refinance your mortgage before the end of the term. This is because the mortgage provider will miss out on income if you transfer to a lower mortgage rate or even another mortgage provider thanks to the transfer of your mortgage.
If the benefits for you outweigh the disadvantages (what remittance you save each month, outweighs the penalty interest that you have to pay), reshaping your mortgage is certainly worth considering. However, you will have to pay the penalty interest in one go. Fortunately, there are a number of options for financing this penalty interest.
Penalty interest tax deductible
Financing penalty interest in one go with your own money is the most advantageous option. However, not everyone has sufficient financial means to pay such a large sum of money.
Financing penalty interest through a personal loan is then a good alternative. The advantage of taking out an additional loan versus raising your mortgage to finance the penalty interest is that your mortgage debt does not increase further for a longer term. Moreover, when taking out a loan you will not have to deal with extra costs in the form of notary fees. In addition, the penalty interest payable is tax-deductible on a one-off basis. Thanks to this tax benefit, the net amount of penalty interest to be paid is therefore considerably lower.
Make an appointment immediately
You can take out a personal loan quickly and easily via Astro Finance. We look forward to working with you on the possibilities and benefits of financing penalty interest in this way. With a personal loan you can also finance a penalty interest that is charged when you pay off your mortgage too much.
During an introductory meeting we list all the pros and cons so that you know exactly where you stand. What are the conditions and what will your new monthly costs be? You can immediately make an appointment with your Astro Finance Coach for a first meeting.