Customers of ABN AMRO have until 1 January 2016 to make prepayments on their mortgages without incurring charges. Prepayment under this facility is possible up to a maximum of the latest valuation of their homes for tax purposes (WOZ-waarde).
ABN AMRO has decided to extend the duration of this facility, which was introduced in 1 November 2013 and was initially supposed to remain in place until 1 January 2015.
The bank chose to open up the possibility of prepayment without charge to all customers with underwater mortgages and, in an effort to help a wider group of customers, not to restrict the scope to gifts only. Customers may now also use their own savings to make prepayments without incurring charges and so reduce their negative equity.
To date, around 1,000 customers have made use of the arrangement. The average prepayment is approximately €40,000.