Czechs have been paying more for mortgages in recent months as interest rates rise to more normal levels. But the consumer will now get a break when it comes to paying off mortgages early. A new measure being prepared by the Czech National Bank would limit the charges banks would be able to inflict on their clients who decide to get out of debt earlier than they’d agreed. The CNB’s bank spokeswoman Marketa Fišerová said that after collecting information from the web pages of banks, it became clear that their policies on how much they charged clients for paying off their mortgage early. The results, she said, “were unclear and untransparent for clients, which in our opinion is in conflict with the principles of consumer protection.” The new regulation would have been more useful for clients, however, if it had come into effect while interest rates were falling, since it would have made refinancing your mortgage at a competing bank more attractive.
