In two years the current fixed interest period ends. An offer already names today the interest rate for the period afterwards. The upcoming decision is not only whether that rate looks favourable: do you want to commit now to a later financing, even though needs, housing plans and then-available offers are not yet finally known?
This article deals with private follow-up financing in Germany. It helps to compare a commitment made today with the conscious decision to keep options open. No option is given an invented interest-rate forecast as justification.
First determine what you are actually agreeing today
A forward loan (Forward-Darlehen) links an agreement made today with a later financing. DSL Bank describes its own model as a loan agreement for later redemption and names a forward premium for that. That demonstrates the structure of a specific provider model, not forward periods or costs that apply to all banks. [MODELL]
A signed financing agreement must therefore be treated differently from a non-binding indication. § 488 BGB governs the duties of both contracting parties; a later more favourable offer does not replace the existing contract simply because you would prefer to use it. [BIND] Before acceptance have it clearly explained which document is binding and which conditions remain open.
Write three dates on a sheet of paper: today's agreement, later disbursement and the end of the new fixed interest period. Ask explicitly from when the offered binding period counts. You cannot reliably infer this timeline from a large number in the advertising header. Until redemption the old loan remains part of your payment schedule.
Four conditions must fit together
The date: The old loan must actually be redeemable at the planned start. § 489 BGB distinguishes the route to the end of the fixed interest period under its conditions from the ten-year route from full receipt with six months' notice. Later agreements can change the statutory reference point; timely repayment is also part of effective processing. [ORD] Have a concrete termination date checked on the basis of the documents before you firmly agree the new disbursement date.
The amount: Use the outstanding balance expected on the future redemption date and to be agreed with the bank. today’s account balance is not a sufficient basis for that. Intended special repayments, additional own funds and separate loan components must be explicitly named. A planned one-off payment is only treated as secure when source, timing and contractual possibility have been clarified.
The disbursement: Ask about the conditions that actually still have to be fulfilled and the procedure in the event of income or property changes. The statutory creditworthiness check contains particularities for certain follow-up cases between the same parties. That does not imply that everywhere a full new check proceeds in the same way, nor an unconditional personal disbursement guarantee. [BON]
Later housing plans: If a sale, a separation or a lower financing need becomes realistic, that very scenario needs an answer in the contract. Ask about consequences in case of non-acceptance, partial acceptance and postponement of dates, including possible costs and their basis. Do not equate these cases with the repayment of an already disbursed loan.
Bring offers to a common basis for comparison
Request for the same later start the same amount, the same observation period and comprehensible payment schedules. Record the full offered nominal interest rate, any included margin, the annual percentage rate, repayment rights and remaining debt. Do not add a named margin again if it is already included in the overall rate.
The effective annual interest rate is the legally regulated price measure for consumer loans. However it does not replace a complete switching budget: § 16 PAngV, for example, excludes notary costs from its cost calculation. [PREIS] Ask therefore additionally about the expenses that will actually be incurred for your switch. A lower annual percentage rate does not automatically decide the benefit of a different special repayment rule.
For consumer loans § 491a BGB provides for a contract draft and appropriate explanations. Use these for open points on binding, costs and procedures. [INFO] Record answers together with the concrete version of the offer; flexibility described orally should be reflected in the contract.
Own calculation model: The same monthly amount shows different final debts
Assume that exactly 200.000 Euro are required at the future start. Thereafter 120 monthly instalments of 1.100 Euro each are paid, a total of 132.000 Euro. The model assumes monthly interest as annual interest divided by twelve; payment each time after monthly interest, no fees and no special repayment. All interest rates are entirely fictional.
- Forward agreed today, paid out later – Nominal interest rate in the model: 3,5 %; remaining debt after 120 instalments: around 125.893 Euro; interest in the 120 instalments: around 57.893 Euro
- Wait, hypothetically lower interest later – Nominal interest rate in the model: 2,5 %; remaining debt after 120 instalments: around 106.949 Euro; interest in the 120 instalments: around 38.949 Euro
- Wait, hypothetically higher interest later – Nominal interest rate in the model: 4,5 %; remaining debt after 120 instalments: around 147.081 Euro; interest in the 120 instalments: around 79.081 Euro
In each row the cash outflow during the ten model years is the same. The difference lies in the interest component and the outstanding debt. The option fixed today lies between the two fictional later outcomes. The table does not say which alternative will occur, nor that financing will later be available at any of the rates.
The lead time was not set as interest-free living: the payments of the existing loan continue outside these 120 months in the example. For an actual comparison they are included in the overall plan together with switching costs and possibly different dates. The table is not a statutory APR calculation.
Make the review into a conscious decision
A viable decision note can read: “The confirmed follow-up requirement matches the date. The offered payment is acceptable for us. We accept that a later more favourable market does not automatically replace our agreement.” Or: “Our sale or credit requirement is still too open; the consequences of the commitment are unclear, therefore we do not conclude this offer now.” These are editorial examples, not personal advice.
If you wait, set a date for when you will review the follow-up financing again and which current documents to use. If you conclude, keep the contract, the declaration of special cases and the agreed repayment plan together. The quality of the decision is shown by whether you can explain its conditions and limits – not by whether a later interest movement happens to turn out favourably.