Early care pays off
In many cases, the fixed-interest period of real estate loans ends after 10 or 15 years, but at this point there is often a residual debt. For this reason, it makes sense to deal with follow-up financing in good time in order to avoid time pressure. Our experts are at your disposal to help you choose the right model.
3 models for follow-up financing explained
Follow-up financing - 1st extension
A extension allows you to extend your loan with your current lender, but with new terms. As a rule, you will receive a new interest rate offer from your bank some time before the end of the fixed-interest period. However, you can also try to get a new interest rate offer yourself. By signing the offer, you can continue the loan at your current bank on new terms. This is usually a straightforward solution for you as a borrower, but it’s often possible to get better terms from other banks.
It’s easy to fall into a risky path under the influence of various comparison sites. Even if it seems possible at first glance to quickly and easily compare different providers and find the best offer, experience shows that this is often difficult in practice. Our consultants will present you with various options in a personal meeting and enable you to compare specific offers that are tailored to your requirements.
Follow-up financing - 2nd rescheduling
If you are considering debt restructuring, the new lender will replace the loan when the fixed interest rate expires and take over the land charges as collateral. The follow-up financing is then taken over by a new bank with different conditions. Notary and land register fees are incurred for the assignment of the land charge, but these are usually in the range of a few hundred euros and are therefore manageable. A small interest advantage can more than offset these fees.
As a borrower, you should not be afraid to consider debt restructuring, because the effort involved is usually less than you think. The assignment is regulated by the credit institutions themselves and as a borrower you do not have to do anything else. As a rule, however, rescheduling the home loan only makes sense at the end of the fixed interest period, since a prepayment penalty is calculated in the event of early redemption. According to legal regulations, however, there is always the possibility of repaying the loan ten years after full payment with a notice period of six months.
Follow-up financing - 3rd forward loan
Up to 60 months before the end of the fixed-interest period, you have the option of setting the new conditions for follow-up financing with a forward loan. In this way you can secure the currently very favorable interest rates for the future. The forward loan is a normal annuity loan with a constant installment. However, you do not have to pay any installments until the actual payment date and the lender does not charge any commitment interest. In contrast, normal follow-up financing can only be concluded six to twelve months before the end of the fixed-interest period, possibly with commitment interest. With a forward loan, you can already achieve planning security for the future today.
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