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Old 04.10.2020, 15:35
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Re: Pre payment on your mortgae

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In principle yes. But I don't really see a case where they would agree to let you repay a meaningful amount of a fix mortgage penalty-free. They got you on the hook for interest + penalty (-0.xx%), waiving that will result in a loss to the bank. You can try negotiating towards longer duration and higher amounts, which does not generate a loss to them, but not much the other way
Banks in Switzerland also have to be mindful of the restrictions and lending ratios that are imposed upon them (which are strictly monitored in the wake of the UBS fiasco), so they generally will accept lump sum amortizations if they are required to bring lending ratios back into shape. As I wrote, my lender was happy to accept a lump sum payment and that was while.the entire amount outstanding was contracted with fixed terms. The lump.sum was quite small, though, as my initial deposit was about 33%. I paid it about four years into the loan.
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