Mortgage lenders to recalculate charges for homeowners who paid off their mortgage

6 Apr 2017 | Genoveva Geppaart

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Thousands of homeowners have been charged too much interest when paying off their mortgage. Since 14 July 2016, when the European Mortgage Credit Directive came into force, mortgage lenders may only charge the actual financial disadvantage they face if customers want to pay off their mortgage earlier than originally agreed.

Consumers overcharged

However, financial watchdog AFM discovered that most mortgage lenders miscalculated the charge. Consumer programme Radar found that about 12,000 customers have been overcharged. Based on new guidelines provided by AFM, mortgage lenders have to recalculate the charges. They probably have to refund millions of euros to their customers. Refunds date back to July 2016, when the new rules came into force.

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