Special Repayment
A special repayment is an additional payment on the loan outside of regular installments, which reduces the remaining debt and thus the interest burden.
Key Takeaways
- •A special repayment is an additional payment on the loan outside of regular installments, which reduces the remaining debt and thus the interest burden.
- •Special Repayment belongs to the Finance category. We explain it step by step for newcomers to Germany.
- •With a loan at 3% interest and 15 years remaining, a special repayment of 10,000 EUR saves approximately 4,500 EUR in interest (simplified calculation).
meinetarife24 Editorial Team
Our independent editorial team carefully reviews all information and regularly updates the content.
Detailed Explanation
Special repayments allow borrowers to pay off their debts faster. They are particularly relevant for mortgages but can occur with all types of loans.
Advantages of special repayments: - Shortening of the loan term - Significant interest savings - Flexibility with financial windfalls
Typical arrangements: - Mortgage: 5-10% of the original loan amount annually - Consumer loan: Often fully repayable at any time - Car loan: Variable arrangements
Important points: - Check contractually agreed special repayment rights - Possible prepayment penalty if exceeded - Tax aspects (for rented properties) - Timing can affect interest savings
Calculation Formula
Interest savings = Special repayment amount × Interest rate × Remaining termPractical Example
With a loan at 3% interest and 15 years remaining, a special repayment of 10,000 EUR saves approximately 4,500 EUR in interest (simplified calculation).
Legal Basis
Section 500(2) German Civil Code (BGB) gives consumers the right to repay a consumer loan early at any time, in full or in part - this is the legal basis for special repayments. For real-estate consumer loans with a fixed borrowing rate, this applies during the fixed-rate period only if the consumer has a legitimate interest. Any prepayment penalty is capped under Section 502(3) BGB (at most 1% of the amount repaid early, 0.5% if the remaining term is under one year, and never more than the lost interest).
Related Terms
Sources & Methodology
Our methodology: the meinetarife24 Editorial Team checks every definition against binding primary data sources and consumer-focused reference portals. We name the relevant legal basis, link related terms and update each entry regularly. We do not sell loans or tariffs ourselves. This explanation is provided purely for information.
- • Legal basis: Section 500(2) German Civil Code (BGB) gives consumers the right to repay a consumer loan early at any time, in full or in part - this is the legal basis for special repayments. For real-estate consumer loans with a fixed borrowing rate, this applies during the fixed-rate period only if the consumer has a legitimate interest. Any prepayment penalty is capped under Section 502(3) BGB (at most 1% of the amount repaid early, 0.5% if the remaining term is under one year, and never more than the lost interest).
- • Price Indication Regulation (PAngV) at Gesetze im Internet
- • Finanztip and the Deutsche Bundesbank as independent references on interest rates and consumer credit.
Go deeper on financing: Understanding the effective annual interest rate and Loan comparison.