New rules on advance payment of mortgages to be introduced
Published:
The Riksdag has voted in favour of a new model for calculation of early repayment charges in connection with advance payment of fixed mortgages. An early repayment charge is the sum a borrower needs to pay to their bank when a fixed-rate loan is redeemed in advance.
The purpose of the new model is to strengthen consumer protection by reducing the risk of unjustified differences when different borrowers redeem their fixed mortgages in advance. A further purpose of the new rules is to make it easier for borrowers to plan their economy and to open their mortgages to competition.
The new rules will come into force on 1 July 2025.