Forward loan - Secure interest rates now?

Cheers community, does anyone possibly have experience with forward loans, whether from inquiries or consultation meetings or actual experience? Does it make sense to secure today's interest rates for in 5 years already, and roughly how high would the surcharges be?

Whether it "makes sense" depends on your personal interest rate expectations, risk tolerance, and possibly income expectations. This cannot be said universally.

If I expect a consistently good income, I can take higher risks, such as those from rising interest rates.

The same applies with a low remaining balance of the loan.

I find 5 years relatively long; a lot can happen, and the world may look different, both positively and negatively. 5 years is probably also the limit for a [Forwardkredit], with surcharges likely unavoidable.

I regularly receive a conditions newsletter from an independent financial advisor, which also mentions forward conditions. It currently includes surcharges of 0.0% for 12 months, 0.35% for 24 months, 0.5% for 36 months, and 0.9% for 48 months. So it reads as if 12 months is no problem, which is not surprising either, since 12 months of interest-free period are common for new contracts, and a follow-up financing is usually not concluded just one week before the deadline. After that, especially higher than 24 months, it gets expensive. Of course, I don’t know to what extent these numbers are representative. My personal opinion is that there is currently no need to worry. Speculation points to a rate hike by the USA in December, but you can’t rely much on that, and until the ECB follows suit… the ECB’s programs are currently running until sometime in 2018. Therefore, I wouldn’t currently consider forward for 5 years. But that is just my crystal ball.

google your friend and helper shows a page with average surcharges:

at 12 months 0.11%
at 24 months 0.38%
at 36 months 0.63%

to my knowledge, some banks also offer up to 60 months. However, surcharges between 1 and 1.5% would probably be realistic then.

Actually, this means that interest rates could rise by 0.3% every year without you suffering any losses. I would wait until an interest rate increase is actually to be expected. I personally do not believe that the ECB will decide on any interest rate increase in the next few months, and even if they do, it is unlikely to be dramatically high..

Thank you very much already. It is clear that this does not make sense at the moment; it remains to be seen what happens after 2018 when a new head is elected who is not so close to the Southern European countries... The question that arose for me was whether I could get below 2% with the [Forwarddarlehen] and 15 years fixed interest. No one can really give a proper outlook (more than 1-2 years). Even a friend who is an investment banker does not dare to make a statement... And since security is more important to me than the last tenth of a percent, I wanted to think about it.