Acceleration Clause

In mortgage finance, the term acceleration clause refers to a clause included in some mortgage agreements. This clause allows lenders to demand immediate repayment of loans from borrowers under certain circumstances.

With regards to mortgages, acceleration clauses typically allow lenders to foreclose on the loan if the borrower misses a predefined number of amortization payments. Acceleration clauses which allow lenders to foreclose on mortgages when the underlying properties are sold by borrowers to new owners are also typical.

In Switzerland, the terms and conditions attached to mortgages typically allow lenders to foreclose on mortgages if, at any point, borrowers fail to meet affordability requirements.

More on this topic:
Swiss mortgage comparison

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