If a home or home loan expires after the end of the debit interest, the loan is usually not yet fully paid off. For the remaining debt, homeowners then have to take a so-called follow-up financing in many cases. With interest rates five or ten years ahead of current rates, many consumers can save with a new loan agreement.
Follow-up financing – Compare pays off
Who needs a follow-up financing, should know: The offers on the market can be quite different, here a comprehensive comparison is required. This can often save over the loan period over thousands of euros.
And so that borrowers do not pay too much, they should take care of an attractive loan offer as early as possible. Important: If the interest rate commitment for an existing loan expires, the bank will send a prolongation offer no later than three months before expiry of the fixed interest period, which usually has to be accepted within a few weeks. But then time is often too short to look for cheaper offers and to compare in peace.
Benefit from attractive conditions for follow-up financing
Especially with follow-up financing, banks often have good deals. Because homeowners have proven their creditworthiness since completing their initial funding by repaying the installments regularly. In addition, they may have a higher income, more financial leeway than a few years ago, when the first loan was taken.
It is important, especially in follow-up financing, to pay off a lot. Right now, borrowers should set the course for their debt. If possible, they should maintain their loan rate, or even better, raise it so that they can repay their remaining debt faster, despite the low interest rates. Since not infrequently there is more financial leeway compared to the time of the first loan conclusion, a higher installment financing rate is also feasible for many.
Secure favorable interest rates for follow-up financing early on
Borrowers should have early follow-up financing comparisons to get a suitable solution with favorable conditions. It makes sense to inform yourself at least half a year before expiry of the interest rate commitment. When interest rates are low, it often makes sense to worry even sooner. Because many banks are currently offering favorable interest rates even now, even if the follow-up financing is only called up in six months or one year. Even with an even longer lead time you can use so-called forward loans favorable offers.