Early Repayment and Lien Release (Fek)

You can pay off a mortgage partially or in full before its term ends. On early repayment, the bank is required to reduce the interest corresponding to the amount paid; in exchange, for fixed-rate loans it may charge an early repayment penalty within the limits allowed by law.

Early repayment penalty

Under consumer protection law, the early repayment penalty on fixed-rate housing finance loans cannot exceed a set percentage of the amount repaid early; that percentage is lower for loans with a shorter remaining term. Variable-rate loans generally carry no penalty at all.

Partial early repayment

When you make a partial early payment, you're offered two options: lower the installment amount or shorten the term. Shortening the term cuts the total interest cost more; lowering the installment eases your monthly cash flow instead.

Releasing the lien (fek)

1. The loan balance is paid off in full.
2. You obtain a 'consent to release the lien' letter (fek yazısı) from the bank.
3. The letter is submitted to the land registry office (tapu müdürlüğü); banks mostly do this electronically.
4. The lien is cleared from the title deed record; check on the e-Devlet government portal that the record has been cleared.