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
Follow-up financing & debt restructuring
500+ 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.
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 500+ 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 calculation
Restructuring
Example: restructuring pays off
Restructuring after the fixed-rate period
- Remaining debt€180,000
- Previous rate3.2%
- New rateunder 4%
- New fixed-rate period10 years
- Comparison5–8 banks
- Process3–5 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.
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Free, non-binding initial consultation — the commission is paid by the bank. I check 500+ banks plus all state development programmes for your situation.