Forward loan planned incorrectly, disadvantages - experiences?

Hi everyone,

I took out a loan in 2013, with full disbursement reached in Q1/2016. Two years ago, I concluded a forward loan, which will repay the loan in Q1/2026 using the special termination right.

However, due to unplanned special payments and an increase in the repayment rate, I will have repaid significantly more than agreed with the forward loan.

What happens with the difference amount that the old bank would receive too much? Is the amount usually transferred directly to my account?

Do I get it, can I freely dispose of it? Or are there any disadvantages I should prepare for?

However, due to unplanned special payments and an increase in the repayment rate, I will have repaid significantly more than agreed with the forward loan.

That’s unfortunate. I think you should have kept a better eye on that. The forward contract is also "just" a contract that you have to stick to – so you have to calculate accordingly.

Is the amount usually transferred directly to my account?

If I get that, can I freely dispose of it?

Definitely not. It is redeemed and earmarked.

Or do I have any disadvantages that I should be prepared for?

You should ask the financing bank how they handle this. Maybe you can use the surplus directly for the first special repayment?

Hello, usually the difference amount is paid out to you. One could also reduce the loan amount, which will probably be feasible as long as the loan has a low interest rate. As has already said, just start the communication.

If you haven't made any special repayments yet, and that's the easiest. Just don't repay the old loan^^

We will be in the identical position in 2024. We have concluded a forward loan of 180,000 EUR, but according to today's projection, we will only need between 150 and 160 K. At that time, we calculated with safety in mind. We did not want to budget so tightly that we would have had to make the special repayment.

An inquiry with the bank revealed that there is no possibility to change the contract. The surplus will be transferred to our account. We will then make the first special repayment in full from it. Still, there will be a lot of money left over.

What we will do with it is not yet exactly clear. Either we will build a fixed-term deposit ladder based on the annual maximum special repayment amount and thus secure the special repayments for a few years in advance, or the money will go into our portfolio. We will make the final decision in September 2024 when the money is credited to our account.

We will be in the exact same position in 2024. Have taken out a 180,000 EUR forward loan,

By any chance also at the orange bank with three letters and a lion?

No, at a credit union. But I assume that the procedures of the banks won’t differ significantly. Asking doesn’t cost anything, as is well known. If you got a very low interest rate, in my opinion the chances aren’t bad at all. The bank could lend the money much more expensively in the short term. But of course, it depends on how the bank has refinanced itself.