The fixed interest period is coming to an end, you don’t want to make any special repayments, and there is still remaining debt. This is a good time to take action. Follow-up financing ensures that your real estate financing continues seamlessly, sensibly, and affordably.
1. What is follow-up financing?
Quite simply, you continue your financing with new terms when the fixed interest period ends and there is still a remaining debt. The aim is to secure good terms and conditions – and to structure the next stage in a way that suits your life.
2. Who is this particularly relevant for?
For anyone with a fixed-rate loan – especially if
- the fixed interest rate expires in the next 12–60 months,
- the remaining debt is still significantly high,
- planning security is important (e.g., families),
- income may fluctuate (e.g., self-employed persons),
- modernization, renovation, or energy efficiency measures are pending.
3. When is the best time?
It almost always pays to start early.
- 12–18 months in advance: ideal for market research, documentation, strategy.
- Up to 60 months in advance: interest rates can often be secured with a forward loan (usually with a surcharge – useful if security is a priority).
In short: those who plan ahead have options. Those who start late are under pressure.
4. What are the options?
- Prolongation: stay with your current bank – usually the easiest option.
- Change banks: take advantage of new conditions on the market – often better interest rates and more suitable installments/repayment terms.
- Debt restructuring with additional requirements: possible if additional money is needed for renovation, conversion, extension, or addition.
- Forward loan: secure interest rates today for later – more planning security, but with a surcharge.
5. What should you check?
- Remaining debt & desired installment: stay constant or pay off faster?
- Fixed interest rate: short = more leeway, more risk; long = more peace of mind, more stability.
- Flexibility: special repayment, repayment change, options for modernization.
- Property & mortgage lending: an increase in property value can improve conditions.
- 10-year option: there is often a legal right of termination after 10 years from full payment.
6. Follow-up financing vs. debt restructuring
- Follow-up financing: the normal next step at the end of the fixed interest period – focus on fair terms for the remaining debt.
- Debt restructuring: change during or at the end of the fixed interest period – can be worthwhile if the figures clearly support it. Caution: possible early repayment penalty.
7. Mini checklist
- Find your loan agreement
- Note the full payment date
- Roughly estimate the remaining debt
- Define your goal (stable payments or faster debt relief)
- Compare bank offers and the market
- Check the forward option
- Consider modernization early on.
8. Typical mistakes
- Starting too late
- Only checking one offer
- Underestimating flexibility
- Not factoring in the need for modernization.
9. Conclusion
Follow-up financing is not a mandatory appointment, but an opportunity for better terms, more peace of mind, and a plan that really suits you. Starting early limits interest rate risks and allows you to develop your financing without rushing – clearly, calmly, and predictably.