Are mortgages freely usable?

It would then be capital procurement on a unencumbered property. Partly also value-increasing. I would try it with brokers, for example Interhyp or Dr. Klein. Are you an employee?

At the first bank (Sparda Bank), the employee told me that the house would definitely be eligible for a loan/had value and that my income was good. However, he said that it was not allowed to use mortgage funds for the repayment of old consumer loans.

However, he said that it would not be allowed to use mortgage funds to repay old consumer loans.

Then he simply "wasn't interested" in your financing. Of course it is allowed. I see it all the time in our retail banking division.

Thank you for the tip. I will contact Interhyp and Dr. Klein next.

At the first bank (Sparda Bank), the employee told me that the house would definitely be eligible for a loan/have value and that my income was good. However, he said that it was not allowed to use mortgage funds to repay old consumer loans.

And you wanted to pay off the high-interest installment loan from Sparda, right?? Of course, he then says it is not "allowed."

Savings banks are often meticulous about that. In our region, they even require 100% invoice proof. That is partly Sparda's business policy, quite economical but only works if everything is standard.

With other banks (or intermediaries), you might have more success.