Builder change - loan

Hello everyone!

About 1.5 years ago, we decided to build with a developer because the plot of land we wanted was unfortunately tied to that. To this day, there is no foundation slab. It must be said that the processing of the land purchase contract dragged on forever because many parties were involved due to a subdivision.

In the meantime, we have received a great offer from another developer. We would save a lot of money and therefore also accept the penalty of the first developer.

Has anyone perhaps already switched developers and can give us tips on how to enforce the switch with the bank? Is the possibility of switching even realistic? The house, meaning the architect’s plans, will be adopted 1:1 – only the developer and the amount (positively) will change.

Thank you very much!
Best regards
Janine

Is it really a property developer? Your description does not clearly indicate what type of contractual relationship exists, because if it were a property developer, you would hardly already own the land.

You are of course absolutely right, I mean construction contractors. Unfortunately, I can't change it anymore :'-)

From the bank's side, I actually see no obstacle to changing the contractor. If they are supposed to build the identical object, the equivalent value for the financing amount remains the same. Or is the question to be understood as that it is already firmly agreed in the financing that partial sums are to be paid out according to the payment plan to the (specifically designated, presumably previous) contractor?

No, we have not signed any assignment so far. The loan application is now over a year old and I seem to recall that we had to fill out countless forms with information, which is why our financial advisor gives us little chance of success - since we would have to submit and get approval as new applicants..?

No, we have not signed any assignment so far. The loan application is now more than a year old and [...] since we would have to resubmit and have it approved as new..?

If such a long time has passed between the financing commitment and the start of implementation, I also expect extensive updates of the procedure – but only those that would have become necessary due to the passage of time, even without changing the contractor. I do not see the replacement of the contractor as a complication in this respect, since it is still about the same building project. If the plans and/or the equipment had changed, it would no longer be about the already discussed financing object. But as it is, this will essentially be a formality. The interest conditions may have changed, as well as the ratio of personal income to the average. So rather a reassessment of the fundamental aspects concerning the customer's person.