The new Czech Act on Consumer Loans
On 1 December 2016 The new Czech Act on Consumer Loans Act step into force. As it has also impact on mortgages for foreigners, here is a brief overview:
- It is possible to finance up to 90% LTV. If client declares income generated abroad then he qualifies for 85% LTV.
- In case of Buy to let mortgages the limit is set on 60% LTV.
- Extraordinary payments of 25% from a mortgage per annum are free of charge.
- In case of property sale the penalty for early repayment is now approx. CZK 10,000.