Follow-up financing: current rates, interest and forward loan comparison when your fixed-rate period ends
If your fixed-rate period is coming to an end, it will be decided in a few months’ time whether your monthly repayments will remain stable or rise significantly. Here’s what you need to know about the cost of follow-up financing, the terms involved, when you can stay with your current bank, and when it’s worth switching. If your current bank comes out on top, we’ll let you know.
What are the current interest rates for follow-up financing?
For a ten-year fixed-rate mortgage, Perini’s current interest rate is 4.00 % borrowing rate (4.07 % effective) up to a 60 % loan-to-value ratio; for a 70 % loan-to-value ratio, the rate is 4.05 % (4.12 % effective). Our own bank survey, as at 5 October 2026. Even a reduction of just a few tenths of a percentage point in the interest rate can save you a lot of money over the remaining term, so it’s worth comparing offers before you accept the one from your own bank.
Current interest rates for follow-up financing: Perini from 4.00 % borrowing rate up to 60 % loan-to-value ratio, 10-year fixed-rate mortgage
| 10 years’ imprisonment | Interest rate | Annual percentage rate |
|---|---|---|
| up to 60 % loan-to-value ratio | 4.00 % | 4.07 % |
| Loan-to-value ratio of between 60 and 70 % | 4.35 % | 4.44 % |
If the loan-to-value ratio exceeds 60 %, the loan is split: the portion up to 60 % is charged at 4.00 %, and only the portion above that is charged at 4.35 %. With a 70 % loan-to-value ratio, this results in a borrowing rate of 4.05 % (4.12 % effective) on the entire loan.
The interest rates also apply to tax non-residents who are resident abroad. Our own bank survey, as at 5 October 2026 · 2 % initial repayment · Instalment per €100,000: €500.00 at 60 % loan-to-value ratio, €504.17 at 70 %.
Follow-up financing: how do Perini's current interest rates compare with the market average?
Follow-up financing can only be compared if the loan-to-value ratio and the fixed-rate period are the same. With a 60 % loan-to-value ratio and a ten-year fixed-rate period, Perini’s interest rate of 4.00 % (4.07 % effective) is slightly below the market average of 4.05 % (4.13 % effective). This is no guarantee: the actual interest rate will depend on the bank, the property and the borrower’s credit rating.
| 10-year fixed-rate, 60 % loan-to-value ratio | Perini | market average |
|---|---|---|
| Interest rate | 4.00 % | 4.05 % |
| Annual percentage rate | 4.07 % | 4.13 % |
Source: Perini’s own bank survey, as at 5 October 2026. Market average: analysis of a mortgage comparison website, as at 5 October 2026. This does not constitute an offer or a commitment to provide finance.
You know the interest rate charged by your current bank, but not the new one. That is why you should compare your main bank’s offer with at least one other before you sign.
What is bridge financing, and when do you need it?
A roll-over loan continues to finance the outstanding balance of your mortgage when the fixed-rate period ends. Until then, the interest rate is fixed; after that, it is no longer fixed. Unless a new agreement is reached, the mortgage will generally continue at a variable interest rate, which is often higher than the previous one.
Rollover financing is the standard process of refinancing once the fixed-rate period has ended; it is predictable and does not incur an prepayment penalty. Refinancing is the process of switching lenders whilst a fixed-rate period is still in force, for which an prepayment penalty is usually payable to the original bank.
Follow-up financing deadlines: When do you need to take action?
If you plan ahead, you’ll have a choice. If you wait until the last minute, you’ll lose your options and your bargaining power. These deadlines are important:
| Date and time | What's coming up | Basis |
|---|---|---|
| up to 66 months in advance | Lock in the interest rate on a forward loan, subject to a monthly premium in advance | Forward loans |
| about 12 months beforehand | Obtain and compare quotes; clarify the outstanding balance as at the cut-off date | our recommendation |
| at least 3 months in advance | Your bank must inform you whether it will continue to provide funding and, if so, on what terms | Section 493(3) of the German Civil Code (BGB) |
| 10 years after full receipt | You may give notice; the notice period is six months | Section 489(1)(2) of the German Civil Code (BGB) |
The time limit set out in Section 489 of the German Civil Code (BGB) applies even if your fixed-rate period is longer than ten years. This is a situation in which switching may be worthwhile despite the long fixed-rate period.
Follow-up financing calculator: what does it show for instalments, outstanding balance and fixed-rate period?
These calculators allow you to see what a new instalment would mean for your remaining debt and which fixed-rate period is best for you. The follow-up financing calculator shows the break-even rate: the maximum follow-up financing rate (Anschlusszins) that the shorter fixed-rate period can reach in order to match the longer one. It is free to use and requires no registration.
Calculating the marginal interest rate: 10 or 15 yearsCalculate outstanding debt and repaymentCalculate new instalment
Extension, refinancing or a forward loan: which option is right for you?
All three options lead to a new fixed-rate period; they differ in terms of the effort involved, the interest rate and the timing. Which one is right for you depends on your remaining debt, the interest rate differential and the remaining term.
| Path | What happens | Advantage | Please note |
|---|---|---|---|
| Extension | You are renewing your account with your current bank | convenient, requires little effort | rarely the most favourable terms |
| Refinancing | They are switching banks | often cheaper | Costs associated with the exchange of collateral |
| Forward loans | You lock in the interest rate today for the future | Planning certainty in the face of rising interest rates | Interest surcharge per month in advance |
The most costly mistake is to do nothing. Further details can be found under Follow-up financing and refinancing and Forward loans.
Reviewing your main bank’s offer: when is it the right time to renew, and when is it worth switching?
Renewing is convenient; switching might be worth it. There’s a place for both. We’ll work out the figures for your specific situation, and if your current bank comes out on top, we’ll let you know. A sample calculation illustrates just how big the difference can be: €200,000 outstanding debt, a ten-year fixed-rate period, 2 % initial repayment.
| Interest | Monthly instalment | Interest rates in 10 years’ time | Outstanding debt after 10 years |
|---|---|---|---|
| 4.00 % | €1,000.00 | €70,917 | €150,917 |
| 3.60 % | €933.33 | €63,938 | €151,938 |
In this calculation, the difference of 0.4 percentage points amounts to around €7,000 less in interest over ten years. Calculation method: Instalment = outstanding balance × (interest + capital repayment) ÷ 12; interest is calculated monthly on the respective outstanding balance. This is a sample calculation, not an offer.
Here’s what to do: Request a written quote from your current bank, specifying the interest rate, the fixed-rate period, the repayment schedule and any options for unscheduled repayments. Then compare this with a second quote. Whether it’s worth switching depends on whether the savings on interest outweigh the effort involved.
How much does a follow-up loan cost?
Renewing with your current bank usually costs nothing extra; if you switch banks, there are additional costs for the mortgage, and the forward loan incurs a surcharge for each month in advance. Our advice is free of charge.
- Extension: An extension with the existing bank is usually granted without an prepayment penalty, as the fixed-interest period is coming to an end.
- Refinancing: When switching banks, the transfer of the mortgage is also involved. The amount depends on the individual case; we will specify this in the quotation.
- Forward loans: A interest rate premium of 0.01 to 0.03 % per month is standard. The closer to the end of the fixed-rate period, the lower the premium.
- Our advisory service: The initial consultation, quotation and structuring are free of charge. The commission is usually paid by the bank. What the advisory service costs.
Special right of termination (Sonderkündigungsrecht) after 10 years: is follow-up financing possible even with a long-term fixed-interest period?
Ten years after the loan has been paid out in full, you may give notice to terminate the agreement in accordance with Section 489(1)(2) of the German Civil Code (BGB), subject to a six-month notice period, even if the fixed-interest period runs for longer. The period is calculated from the date of full disbursement, not from the date of the contract. Anyone switching in this way will need follow-up financing to take effect on the termination date, which is why the comparison must be carried out before giving notice.
Property value and loan-to-value ratio: how can you reduce your interest rate?
The interest rate depends on the loan-to-value ratio, i.e. the ratio of the outstanding debt to the mortgage lending value. For a loan-to-value ratio of up to 60 %, the interest rate is 4.00 %; for the portion between 60 and 70 %, it is 4.35 %. Making an unscheduled repayment before the due date reduces the outstanding debt and, consequently, the exact amount that needs to be refinanced.
New instalments for follow-up financing: what does the longer fixed-rate period cost?
Anyone who took out a mortgage at a low interest rate ten years ago will look first at the monthly repayment when considering a new mortgage. The table shows what a 4.00 % interest rate and a 2 % initial monthly repayment mean, compared with an assumed previous interest rate of 1.50 %.
| outstanding debt | Interest rate at 1.50 % (assumed) | Interest rate at 4.00 % | More per month |
|---|---|---|---|
| €100,000 | €291.67 | €500.00 | €208.33 |
| €200,000 | €583.33 | €1,000.00 | €416.67 |
| €300,000 | €875.00 | €1,500.00 | €625.00 |
Calculation method: Instalment = outstanding balance × (interest + 2 % capital repayment) ÷ 12. The example interest rate of 1.50 % is for illustrative purposes only; you will find your own rate in the (Darlehensvertrag) loan agreement. The instalment can be adjusted via the repayment amount and the fixed-rate period, as shown by the fixed-rate calculator.
Special circumstances: what applies to increasing the loan amount, KfW, pension, self-employment and rejection by the bank?
Increasing the loan depends on the lending value, your income and the bank; an existing KfW loan is checked as well, and with self-employment, approaching retirement or a rejection by your bank the right banking partner can still make it work.
- Increasing the loan: Whether the loan amount can be increased as part of the follow-up financing – for example, to fund a modernisation – depends on the mortgage lending value, your income and the bank. We’ll look into this during the initial consultation.
- KfW loans: An existing KfW loan has its own fixed-interest period; the renewal offer is provided by your main bank. We will look into this as part of the follow-up financing process.
- Self-employment, approaching retirement, past credit issues: many banks turn applicants away across the board. With the right banking partner, however, it is still possible to secure a loan.
- Rejection by your usual bank: A rejection does not mean that no bank will provide financing. We will look into other banks to suit your circumstances.
Documents required for follow-up financing: What should you have to hand?
Typical documents include your current loan agreement, showing the outstanding balance and the end date of the fixed-interest period, proof of income and the property documents. You will receive the blank forms straight away: the self-disclosure form and the statement of assets. We will let you know during the initial consultation which other documents your bank will require.
How does follow-up financing work at Perini?
After a free initial consultation we assess within 48 hours whether follow-up financing is possible, present an offer, and you compare it with your own bank’s.
- Free initial consultation: Book an appointment or message us on WhatsApp.
- Assessment within 48 hours: We will assess whether your follow-up financing is likely to be possible.
- Free quote and structuring: We compare over 650 banks and set the fixed-rate period, repayment schedule and optional extra repayments for you, all within 48 hours.
- Your decision: You compare our offer with that of your own bank. The commission is usually paid by the bank.
Related pages
Follow-up financing and refinancing
Refinancing or extending the term with the bank: the options in detail.
Frequently asked questions about follow-up financing
What are the current interest rates for a follow-up mortgage?
For a ten-year fixed-rate mortgage, Perini’s current interest rate is 4.00 % borrowing rate (4.07 % effective) up to a 60 % loan-to-value ratio; for a 70 % loan-to-value ratio, the rate is 4.05 % (4.12 % effective). Our own bank survey, as at 5 October 2026. The interest rate you are offered will depend on the bank, the property and your credit rating.
When should I start looking into follow-up financing?
Early. You can lock in the interest rate up to 66 months before the end of the fixed-rate period using a forward loan; you should start comparing offers around 12 months beforehand, and your bank must inform you no later than three months beforehand whether it will continue to provide financing and, if so, on what terms.
Which is better: extending the term or restructuring the debt?
That depends on the interest rate differential, the outstanding balance and the effort involved. Extending the term with your main bank is convenient, but rarely offers the most favourable terms; refinancing is often cheaper but requires some effort to swap the security. If your main bank comes out on top, we’ll let you know.
How much does refinancing really cost?
No prepayment penalty is payable once the fixed-rate period has ended. If you switch banks, you will also need to transfer the mortgage, the cost of which depends on the individual case. The costs are set out in the quote, which is provided free of charge, before you make your decision.
At what interest rate differential is it worth switching banks?
There is no fixed limit; what matters is the balance between the interest saved and the costs involved. Example: With a remaining debt of €200,000 and a 2 % repayment rate, a 0.4 percentage point reduction in interest rates would mean around €7,000 less in interest over ten years (model calculation).
What is a forward loan, and how much is the premium?
A forward loan locks in the interest rate for the follow-up financing today, 1 to 66 months in advance. A premium of 0.01 to 0.03 % per month in advance is standard. Find out more under Forward Loan.
Can I cancel the agreement after 10 years, even if the fixed-interest period runs for longer?
Yes. Under Section 489(1)(2) of the German Civil Code (BGB), you may terminate the agreement ten years after receiving the full amount of the loan, subject to six months’ notice. You will then need to arrange follow-up financing by the termination date.
Is my main bank obliged to offer me a follow-up loan?
The bank must inform you, no later than three months before the end of the fixed-interest period, whether it will continue to provide financing and on what terms (Section 493(3) of the German Civil Code (BGB)). You have no legal right to have the loan extended at your current interest rate.
What happens if I can’t get follow-up financing or if I do nothing?
Unless a new agreement is reached, the loan will generally continue at a variable – and often higher – interest rate. If your usual bank declines your application, we will look into other banks: with the right banking partner, it is possible to secure a follow-up loan even if you are self-employed, approaching retirement or have had previous credit issues.
How much will my monthly instalment be if my outstanding debt is €100,000, €200,000 or €300,000?
With an interest rate of 4.00 % and an initial repayment of 2 %, the monthly payments are €500.00, €1,000.00 and €1,500.00. Calculation method: Remaining debt × (interest + repayment) ÷ 12. The fixed-rate calculator uses your own fixed-rate period and repayment amount.
Can I increase the loan amount when renewing my mortgage?
Whether the loan amount can be increased – for example, to fund a modernisation – depends on the mortgage lending value, your income and the bank. We’ll look into this during the initial consultation.
How does KfW follow-up financing work?
An existing KfW loan has its own fixed-interest period; the follow-up offer comes via your main bank. We will look into this as part of the follow-up financing.
Is there a top-rated option for follow-up financing?
No, there isn’t a single ranking listing the very best provider. Anyone looking for a ‘test winner’ is looking for the bank offering the best interest rate for their particular circumstances, and this depends on the loan-to-value ratio, the fixed-rate period, credit rating and the property in question. That’s why we compare over 650 banks.
Bridging finance comparison: What matters when comparing offers?
The effective interest rate, assuming the same fixed-rate period and the same outstanding balance, as well as whether the existing bank extends the term or another bank takes over. A comparison that does not include this information shows interest rates but not the total costs.
Have your follow-up financing reviewed
Initial consultation free of charge. Quotation and structuring free of charge. Within 48 hours, you will know whether your follow-up financing is likely to be possible. The commission is usually paid by the bank.
Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.
