Follow-up financing

Follow-up financing occurs when the fixed interest rate of an existing financing for a property expires and a new loan is needed to cover the remaining amount.

The main difference is that with a forward loan you fix the interest for future follow-up financing today, whereas with conventional follow-up financing the interest is only fixed at the time of conclusion . The forward loan offers you the opportunity to secure low interest rates at an early stage and to protect yourself against possible interest rate increases.

A forward loan is a special form of follow-up financing in which you conclude a new loan agreement before the current fixed interest rate expires. This allows you to secure the current interest rates for the future.

It is recommended to take care of follow-up financing at least three to six months before the fixed interest rate expires in order to have enough time to find a suitable offer Allow time for the application. The solution with a forward loan with up to 60 months before the end of the fixed interest rate can also be recommended.

It is advisable to obtain several offers from different banks or credit institutions and compare them in terms of interest rate, term, flexibility and other conditions. The digital financing configurator from Finanzmakler.online can help you with this.

Switching to another bank can definitely make sense, as other providers may offer more attractive conditions due to a new loan-to-value determination (market value determination). It is important to carefully weigh the pros and cons of switching.

As a rule, only the fees are charged for a so-called land charge assignment, which amount to approx. 0.2 percent of the land charge amount. The lower interest costs that can arise when changing credit institutions usually compensate for these additional fees.

The amount of the monthly installments should be chosen so that they fit well into your personal budget. It is important to realistically assess the financial burden and plan a buffer for unforeseen expenses. The calculated term, which is determined, among other things, by the repayment rate, should harmonize with your repayment horizon. The goal for full loan repayment is often set before the personal retirement age.

Early redemption is usually possible, but early repayment penalties may apply. It is advisable to check the exact conditions in the existing loan agreement and, if necessary, to consult a specialist advisor.

The Schufa score can be important because it can have an impact on the loan conditions. A good score can lead to cheaper interest rates. It is advisable to regularly check your Schufa data and improve it if necessary.

Proof of income, bank statements, current loan documents, property documents and a list of monthly expenses are usually required. It may also be necessary to have the current value of the property appraised. Use the financing configurator from Finanzmakler.online for smart and convenient entry. The documents specifically required for your project will be communicated to you afterwards.

Yes, it is possible to combine follow-up financing with other loans, e.g. B. for modernization measures or the purchase of another property. This requires a close examination of the overall financing and, if necessary, additional security. To check your project, please use the digital financing configurator from Finanzmakler.online.

The term and fixed interest rate can be chosen individually, depending on your own financial goals and assessment of future developments. A longer term can mean lower monthly payments but higher overall interest costs. The decision for a short or long fixed interest rate also depends on your personal risk profile. It is advisable to make a balanced decision.

With a forward loan, you agree with the bank today on the conditions for follow-up financing that begins in the future, e.g. B. after the current fixed interest rate expires. The loan agreement for a forward loan can be concluded up to 60 months before the start of this new financing, the end of the fixed interest rate of the current financing. The new debit interest rate agreed on the date of this contract signing will then apply in the future for the newly agreed debit interest rate.

A forward loan offers you the opportunity to benefit from low interest rates and protect yourself against interest rate increases. You can secure attractive conditions early on without your current loan expiring.

A forward loan is recommended if you expect interest rates to rise in the future. If current interest rates are low and you have an existing loan that is about to expire, a forward loan can be a good option to secure low interest rates for the future.

Withdrawal from a valid forward loan is not possible without notice. This termination would be accompanied by an early repayment penalty.

One risk is that interest rates could be lower in the future than at the time of the forward loan. In this case, you could potentially pay higher interest than necessary. It is important to carefully monitor interest rate developments and weigh the risk individually.

Yes, a forward loan is usually always taken out with another bank. It's worth getting different quotes and comparing conditions to find the best option for your needs. Feel free to use the digital financing configurator.

Prolongation is the extension of a loan from the current lender, the credit institution, after the agreed term has expired. As a rule, the credit institution will send you offers to extend the contract in good time before the current fixed interest rate agreement expires, which can be on the same or different terms. This form of "follow-up financing" would be the quickest and easiest solution for you and the credit institution, as there is no need to re-check the property or creditworthiness, but the interest rates are regularly significantly worse compared to offers from a new institution.

Yes, as a rule the maximum lead time for a forward loan is around 5 years and varies between institutions. This means that you must complete the contract within this period in order to receive the agreed conditions. Most institutions offer at least a lead time of 36 months.

Yes, a forward loan can also be used for other purposes such as purchasing a new property or for modernization measures. It is important to compare the exact conditions and options - an expert advisor will be happy to help you with this. Please present your project using the digital financing configurator.

The monthly installments for a forward loan can change depending on the interest rate and term. As a rule, however, the monthly installments are similar to those for conventional follow-up financing. For the duration of the current loan, the end of which has not yet been reached, there are no parallel interest or repayment payments for the forward loan. The exception is several individual loan contracts whose fixed interest rate agreements end or continue on different dates.