Is there any way to get out of a mortgage with >6% rate of interest which was fixed for 10 years (I am in my 5th year)? The only option that my mortgage provider bank provides, consists of a >30K euro penalty. Are any other legal recourse?

  • Absent more detailed information about what exactly the mortgage contract says, it is hard to tell what outs you might have. Commented Feb 17, 2016 at 22:21
  • Why would there be a 'legal recourse'? You accepted the terms of the contract when you signed it, didn't you?
    – AakashM
    Commented Feb 19, 2016 at 9:46
  • @AakashM The Netherlands has a history with some questionable mortgage products with various successful class-action like lawsuits to recover damages from providers. Those are mostly based on deceptive marketing or incorrectly calculating interest rates. There is likely no legal recourse for having a "high" interest rate and having an early repayment penalty. The OP's mortgage is also unlikely to be one of the "problem" mortgages addressed in the lawsuits.
    – Eric
    Commented Feb 19, 2016 at 17:20

1 Answer 1


In a typical Dutch mortgage, you can only pay off or refinance the entire mortgage without paying a penalty if:

  1. Your fixed interest period is about to expire
  2. You sell the house or are foreclosed on
  3. One of the people on the mortgage dies
  4. The mortgage has been paid off through the normal payment process
  5. The interest rate for new mortgages is higher than your current mortgage
  6. Your house is damaged to the point it has become unliveable

Of those, your best bets are to wait the remaining 5 years or to sell the house if you want to get a new mortgage with a lower interest rate without paying a penalty.

There's always a small chance that your mortgage provider may make an exception for you or reduce the penalty based on your circumstances. It's best to contact your mortgage broker or the provider directly to discuss this. If your mortgage is an "Interest Only" mortgage, you may have marginally better luck with attempting to convert to an annuity mortgage.

Other options include:

  • Repay a small part of your mortgage each year. Typically you can repay 10% each year penalty-free, but the percentage varies and there may be some other constraints depending on the type of mortgage you have. Speak with your mortgage broker/provider.
  • Look into refinancing with a provider that offers "rentemiddeling" (Thanks @Karl) as an option to spread the cost out over a longer period of time. You won't get the market interest rate, but you may still end up with a lower rate that is acceptable to you.
  • 1
    You can also ask your bank if they support "rentemiddeling". In this case your interest rate and the the current market interest rate are averaged out and any penalty is added as an increment to the current market interest rate. In this case you would not need to pay the penalty out of your own means.
    – Karl
    Commented Feb 18, 2016 at 14:18
  • To further add about rentemiddeling: I've recently done this. Saves me 50 euros every month, at a one-time expense of 250 euros. Money well spent. Commented Jul 4, 2018 at 6:29

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