Forward loan
Lock in today the interest rate for your follow-up financing in 1–5 years. Sensible when rates are rising — you pay a small interest surcharge in return for planning certainty.
Follow-up financing
Refinancing a German property loan
650+ banks compared. Forward loans can be arranged up to 66 months before your fixed-rate period ends. If you have moved abroad since taking out the loan, your existing bank may not extend — a problem to solve two years early, not two months. Also for buy-to-let and special situations. Mortgage interest rates in Germany move independently of a borrower's country of residence.
In short
In short
Follow-up financing or refinancing (Umschuldung)?
Follow-up financing is the regular new loan after the fixed-rate period ends — plannable, with no early-repayment penalty. Refinancing during a running fixed period usually triggers an early-repayment penalty at the old bank.
What is a forward loan?
It locks today's rate for a follow-up financing 1 to 66 months ahead. You pay a small surcharge per month of lead time in exchange for planning certainty — sensible when rates are expected to rise.
Mortgage interest rates Germany: is switching banks worth it?
Usually yes. Even 0.3–0.5% less can save €10,000 or more over the remaining term. Your existing bank rarely offers the best terms — Perini compares 650+ banks, the first consultation is free and the fee is paid by the bank.
What matters with follow-up financing and refinancing?
When the fixed-rate period of your mortgage ends, you need follow-up financing — and this is where you can save or lose the most. There are three routes. A prolongation with your existing bank is convenient, but rarely the cheapest. Refinancing to another bank is often cheaper and costs some effort to transfer the security.
A forward loan lets you lock in today's rate up to a few years ahead. Act only just before expiry and you lose both choice and negotiating position; take out a forward loan too early and you pay a premium.
The costliest mistake is doing nothing — after the deadline the loan usually rolls automatically into the more expensive variable rate. Which option works depends on the remaining balance, the fixed-rate term and market conditions; we run the numbers. Not legal or tax advice.
Key facts
Follow-up financing at a glance
Three ways out of the interest trap
Restructuring & switching banks
Instead of accepting the house-bank prolongation — compare other banks. On €200,000 remaining debt, a 0.3% rate difference can mean €10,000+ over the remaining term.
Follow-up despite a special situation
Self-employed, near retirement, earlier credit restrictions — many banks decline across the board. With the right bank partner, follow-up financing is still possible.
Timeline
When is the right time?
- 3–5 years before the fixed-rate period ends: consider a forward loan — lock in rates, small surcharge
- 2 years before the fixed-rate period ends: start the bank comparison — even if you sign nothing yet
- 6–12 months before the fixed-rate period ends: obtain binding offers, negotiate with the house bank
- After 10 years of fixed rate: special termination right §489 BGB — you can terminate, even under a longer agreement
What I check specifically
- Current remaining debt + repayment plan of the existing bank
- Market comparison across 650+ banks — including follow-up special cases
- Early-repayment penalty when switching banks — where relevant
- Check the special termination right (§489 BGB)
- Negotiation using house-bank terms as a comparison basis
FAQ
Frequently asked questions
Is switching banks worthwhile for follow-up financing?
In most cases yes. Even a 0.3–0.5% rate difference often saves €10,000+ over the remaining term. The existing bank rarely offers the best terms — it knows that many clients prolong out of convenience. My market comparison is free.
What is a forward loan?
A forward loan locks in today the interest rate for your follow-up financing in 1–66 months. You pay an interest surcharge (between 0.01 and 0.03% per month of lead time) in return for planning certainty. Sensible when rates are expected to rise.
What does switching banks cost?
Notary/land register for the assignment of the land charge: about 0.15–0.25% of the loan amount. The new bank often pays this. An early-repayment penalty does not arise on a normal schedule — only on early termination outside the §489 special termination right.
Model calculationRestructuring
Example: restructuring pays off
Restructuring after the fixed-rate period
| Item | Amount |
|---|---|
| Remaining debt | €180,000 |
| Previous rate | 3.2% |
| New rate | under 4% |
| New fixed-rate period | 10 years |
| Comparison | 6–10 banks |
| Process | 3–10 working days |
Terms are daily and depend on credit standing.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Request a financing analysis
Free, non-binding initial consultation — the commission is paid by the bank. I check 650+ banks plus all state development programmes for your situation.
More on financing