Fix mortgage: Can we go to the bank now?

Phew, I hope I can explain it in a way that you understand the situation and the question: So, we found a house and definitely want to buy it. However, the owners will only sell once they have found a house in a very specific place themselves... so we are just sitting here waiting. Now the question is: can we somehow secure the low interest rates even though we don’t know when the sale will happen? (and as long as nothing is signed, it could also be that the contract doesn’t happen after all?!) How do you handle this kind of situation—or does it not matter because interest rates don’t change that much within a year?! I’m not really clear on this and hope you have more knowledge! Best regards

So theoretically it is possible to conclude the interest rate and contract, but by no means sensible. Assuming a contract with a 12-month call period is concluded and the business does not materialize within 12 months, you cannot call up the loan, then you have to pay the commitment fee over the term. You can only get out of the contract by paying a non-acceptance compensation. So everything is expensive. Definitely do not do it. You could put money into a home savings contract during that time, then you have a certain interest rate security. But explaining that is too complex here. How the interest rate will develop in the next few months? – I don’t think anyone knows!
Regards, Pit

No - no one knows for sure, but interest rates can hardly get much cheaper, can they? Regarding the question: Many banks offer construction loans interest-free for up to 12 months. If you want to plan beyond that, you have to take out a forward loan, which, however, involves interest costs. The unpredictable factor remains the potential sellers, as they could still change their minds - then you would have a big problem!

We will probably sit down with the sellers in the next few weeks and maybe we can get them to make a preliminary contract... that would be a bit safer. In any case, I’ll be glad when I finally have everything settled ;-)

Yes, I hope so too... It would already be quite good if they assured us that we would get it within a year at the price of xy euros - over that period we could get an interest-free provision from the bank.

But then preferably with a notarized contract, because if the deal falls through, you are stuck with the loan and that can become very expensive.

Regards, Pit