Pirates defied penalty for early mortgage repayment


“Everything is still under negotiation. On behalf of the Pirates, we do not agree with the introduction of a fine for early repayment,” Jakub Michálek, chairman of the pirate club, told Novinkám a Práv.

“Our deputies are still discussing the fee within the club,” added STAN spokeswoman Sára Beránková.

At the same time, the decision of the club of Elders and independents could be an imaginary tip in the balance due to the distribution of forces in the House of Representatives. Even the opposition does not agree with the introduction of the fee.

We do not agree with the introduction of a penalty for early repayment

Jakub Michálek, head of the pirate parliamentary club

At the same time, Stanjur’s head of finance and the Czech Banking Association declare that the matter is already done and that the fee for extraordinary repayment of the mortgage will be up to one percent. According to them, this is a compromise agreement.

Although the banks are still stepping up the pressure and threaten that if the penalty is not raised to two percent, as originally considered, they will stop providing long-term fixes, typically for eight or ten years, because they can lose a lot of money once mortgage clients pay off early, and penalties in the amount of one percent will not cover their losses.

Early repayment of the mortgage will become more expensive from January

Pension sticker

How it turns out will be seen in the vote in the House scheduled for next Wednesday.

A few days ago, the parliamentary budget committee did not take a position on the amendment proposed by deputies Michael Kohajda (KDU-ČSL) and Vojtěch Munzar (ODS), who proposed that one percent of the unpaid amount be the maximum penalty. The fee would be graduated so that the client would pay a maximum of 0.25 percent for each year started.

At the same time, the Ministry of Finance agreed with this in the committee.

The committee did not even accept recommendations on the proposals of Michálek and Patrik Nacher from the opposition movement ANO, who both wanted to completely waive the fee for early repayment.

He only supported that the new prepayment fee rule apply only to new mortgage loans and new fixings.

“Coalition partners, especially STAN, TOP 09 and Pirates, protested loudly at first, but it turned out as always. But at least our pressure was worth something – the unacceptable principle of indirect retroactivity was abolished,” commented Nacher.

He also drew attention to the fact that this is a content sticker in the law, which otherwise deals with pension products and changes in the third pension pillar.

According to CNB data, domestic banks registered approximately 960,000 mortgages at the end of August. Now they can charge for repayment of the mortgage before the end of the interest rate fixation in the order of one hundred crowns, a maximum of one thousand as an administrative fee. But after the change, there should be tens of thousands.

The amendment also provides for two new situations where the loan can be repaid early without penalty. And this in the settlement of the spouses after the divorce and the sale of the property two years after its purchase. Today, this is only possible in difficult life situations, or up to 25 percent of the principal can be repaid each year during the contract signing period.

Banks threaten to abolish long-term fixations on mortgages

The article is in Czech


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