A prepayment letter requesting a home loan must comply with certain formalities. Here is a sample letter to request prepayment count to help you in your efforts.
What the law says
You want to anticipate the repayment of your home loan? Article L. 313-47 of the Consumer Code authorizes you to do so. It provides that "the borrower can always, at its option, prepay, in whole or in part, loans (...). The loan agreement may prohibit repayments equal to or below 10% of the original loan amount, unless it is his balance. "
The advice of Eric Roig, founding director of droit-finances.net
Your loan agreement may provide for payment of compensation to the bank in case of early repayment. Be aware that if you contracted after 1 July 1999, the compensation is not due if you or your spouse must sell your property due to a change of workplace (a mutation, for example) or if one of you must stop work (in case of dismissal, for example). This amount can not be asked if your spouse dies.
When compensation You may be required, the amount is subject to a double ceiling: it can not exceed 3% of the outstanding capital before repayment nor exceed 6 months interest on the principal outstanding.
Your letter must be sent to your bank by registered mail with return receipt.
You can rely on the following sample credit redemption letter to send your mail to your bank.
Name Sender Name
First Name receiver
Subject: Refund Request my real estate loan early
Under Article L. 313-47 of the Consumer Code, I want to repay my home loan with an initial amount of (x euros) contracted with your business on (specify date).
To do so, please kindly contact me as soon as the exact amount of the sum which I must acquit myself as well as the penalties which may expose myself this early repayment.
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