Already on a Fixed Rate? How UKNF Rules Let You Refinance to a Cheaper Bank
A common myth in Polish banking forums says that once you sign a 5-year fixed rate, you are stuck for 60 months. In reality, UKNF regulations only block switching from fixed to variable – refinancing from an expensive fixed rate to a cheaper fixed rate at another bank is 100% open.
1. Interactive UKNF Rule Checker: Check Your Current Loan Type
Select the type of mortgage you currently hold in Poland to see what the Polish Financial Supervision Authority (UKNF) permits and blocks:
2. Why So Many Borrowers Misunderstand the July 2023 UKNF Position
In July 2023, the Office of the Polish Financial Supervision Authority (UKNF) issued guidance preventing banks from refinancing an active 5-year fixed-rate mortgage into a variable-rate mortgage before the 5-year period expires.
However, the UKNF explicitly confirmed that refinancing an expensive 5-year fixed-rate loan into a cheaper 5-year fixed-rate loan at another bank is 100% legal and permitted (`fixed → fixed`). Furthermore, under Article 40 of the Polish Mortgage Credit Act, banks cannot charge an early repayment fee during a fixed-rate period (`0% fee`).
Frequently Asked Questions (FAQ)
Can my current bank charge a penalty fee when I pay off my 5-year fixed mortgage early?
Under Polish law, on fixed-rate mortgages (okresowo stała stopa oprocentowania), none of the 11 Polish banks charge an early repayment fee (0 PLN commission throughout the fixed period). Note that variable-rate loans in their first 36 months can still carry up to a 3% statutory commission at some banks.
Will my current bank lower my fixed rate if I just ask them for an annex?
Usually a bank refuses to lower an active 5-year fixed rate for its own existing customer mid-term, because it knows you are already locked in. However, a competing bank is eager to acquire your loan at 5.88% – 6.15% via a fixed-to-fixed refinancing.
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