Mortgage Termination of the loan
Termination of the loan – what applies?
Mortgage Termination of the loan The lender only has the right to cancel a loan in advance under certain conditions. However, you as a consumer always have the right to pay the loan in advance. In some cases, you will then have to pay some compensation to the lender.
A lender only has the right to cancel your loan for immediate payment in certain situations. These situations are mainly about that
- You are late with the payments on the loan
- The value of the security (house, apartment, plot) has decreased
- It is clear that you are avoiding paying the debt
- The lender has special reasons.
If you are late with one or more payments, the lender has the right to terminate the loan, but then it is required that it is stated in the loan agreement that the loan can be terminated in the event of late payment.
You often have four weeks' notice
You have the opportunity to prevent the termination if you pay what you owe within four weeks
There are some exceptions to the rules about when the lender may cancel a loan, for example, if you bought an item with a so-called take-back reservation.
The security for the loan has deteriorated
If you have provided security for the loan, and the value of the security has deteriorated significantly, the lender has the right to cancel the loan.
However, this only applies if security has deteriorated for any reason other than a general price decline in the relevant market.
The lender has the right to cancel the loan if it is “clear” that you evade your debt by deviating, disposing of property, or something similar. Examples of such circumstances are that you leave Sweden or get rid of all your assets.
A lender has the right to cancel a mortgage on an interest rate change date (the day when a certain fixed interest period expires) if there are special reasons.
The right to pay a debt in advance
As a consumer, you always have the right to pay your debt in advance – in full or in part. If you have a loan with a fixed interest rate, you may have to pay interest difference compensation to the lender.
There is a big difference between different loans, with mortgages the amounts can be very large.