/ world today news/ Fees for early repayment of housing and mortgage loans are waived – this is what the parliament decided. There will also be no penalty interest from the bank if the customer repays the loan after its first year. The interest cannot exceed 1% if the loan is returned before one year has passed since it was taken.
The innovations are included in the amendments to the Law on consumer credit, which was introduced by MP Yordan Tsonev from the DPS.
Other fees are also expected to drop. For example, the one for considering a loan application, which are now between BGN 20 and 40.
However, the innovations do not affect people who have already concluded contracts. They will return their credits under the old rules.
People who will take out loans from a bank for a home will be able to enter when concluding the contract that they want to secure the loan only up to the value of the apartment, and under this condition they will receive a loan with a slightly higher interest rate. The financial institution in default can take the home if it fails to sell it at its old price.
“The client, who has not paid the bank for a loan, will not be able to negotiate with it for several months, and within a period of 1 month, the bank with a writ of execution can proceed to seize the property. This is the bad thing about the adopted change”, he explained GERB MP Emil Radev.
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