Compensation amount too high - procedure in case of debt restructuring

Our debt restructuring is coming up soon, meaning we will switch the mortgage financing to another bank after the initial fixed interest period expires. To stay below the loan-to-value limit, the new loan amount was deliberately chosen to be lower. With a special repayment, we are already quite close to the amount stated in the new contract, with about 2500 euros still missing. How does this work now, will the new bank soon send a letter asking us to transfer the missing amount to them on the repayment date, or do we have to reduce the redemption amount beforehand with another special repayment (which is getting tight since there is a minimum amount for a special repayment, I think it was even 2500 euros). Or will the new bank redeem the amount as is, even though it is too high, and adjust the loan accordingly? The old bank couldn't tell me anything about this; they said the banks "work it out among themselves"... But I would like to know in good time how it works, since we have the missing amount in a home savings contract and you cannot just dissolve that from one moment to the next.

Hello,
as a rule, you will receive a letter from your old bank stating by when the redemption amount must be credited to the loan account. Then your new bank will transfer the loan amount agreed with you, and you should pay or transfer the missing amount at the same time.
Early repayment beforehand would only be advisable if you could do this without a prepayment penalty because it was agreed that way. Otherwise, just as described.
Best regards

Aha, thanks for the answer, that already helps me. Yes, we used the maximum special repayment again at the end of the year, and now received an email from the new bank stating that they will now request the exact redemption amount and then get back to us. That was also part of the problem, since we didn’t really know exactly how much was still outstanding in the end. Because the initial repayment plan had been obsolete at the latest since the first special repayment - at least regarding the remaining debt. But I am satisfied, from the 100% financing it has become a 75% follow-up financing within 5 years.

Aha, thanks for the reply, that already helps me a lot. Yes, we took advantage of the maximum special repayment again at the end of the year, and now we have received an email from the new bank saying that they will now request the exact payoff amount and then get back to us. That was also part of the problem, as we didn’t really know exactly how much was still outstanding in the end. Because the initial repayment plan was obsolete at the latest since the first special repayment – at least regarding the remaining debt. But I am satisfied, from 100% financing within 5 years it has become a 75% follow-up financing.

That’s a great achievement. Feel free to ask the building society how quickly you can access the money. Often, you have to observe a notice period or there is a deduction. Good luck

I believe it should go "quickly" enough, since I have become unable to work and should therefore even receive the housing subsidies paid out. Although "quickly" can still mean several weeks, I think, we already did this a few years ago when we bought the house. But there are still 3.5 months until the redemption, I just don't really know whether I then have to prove a housing-related use, I think back then we did not have to prove to the building society that the money was for incidental purchase costs.

Hello, you can also easily overpay the loan to be repaid with your special repayment. You will get that back then.