Rising interest rates: How to secure follow-up financing for your property
According to Finanztip, mortgage interest rates are currently between 3.7 and 4.2 percent, while the key interest rate was two percent in October. This is a significant increase that is causing uncertainty among many homeowners.
But what can affected homeowners do now? One option is to find out about current interest rate trends and possible follow-up financing options at an early stage. It may be advantageous to take out follow-up financing before the fixed interest period of the current loan expires.
Those who want to play it safe can secure the current interest rates with a forward loan up to five years before the fixed-interest period expires. However, an interest premium is usually charged, which is why it is important to calculate exactly whether the forward loan is worthwhile.
Another option is to extend the existing loan. In this case, the new interest rate is based on current market rates. The disadvantage is that the repayment rate increases if interest rates rise. However, the advantage is that additional costs such as those for transferring the land charge and the notary, as well as a new credit check, are not incurred.
Debt restructuring can also be a good idea if other banks offer better terms. But you should factor in the extra costs to see if it's worth switching.
If you have any further questions about your follow-up financing or would like to find out more about the situation on the real estate market, please do not hesitate to contact us. We will be happy to advise you.