Forward loan - Secure interest rates now?

Hello,

you will certainly receive a forward loan up to 5 years in advance. The problem will be the 2nd loan that expires in 2031. In the case of a land charge assignment / loan change, it will move to the 1st position. And I don't think the current institution will go into subordination. They would ruin the additional business for themselves. You will find it difficult to get a subordinate forward loan and if so, only on poor terms. The only option is to refinance the 110k. Was it newly concluded?

Okay, that is new to me and would really be negative if the bank moves up in subordination. I will study the loan conditions again. Is it always like that?

Refinancing for the 110,000 EUR is out of the question since it was only completed in 2015.

Yes, it is always like that. One does not assign the mortgage including the rank. You are unfortunately "arrested". This consideration should have been made in 2015. Unfortunately, you had a bad advisor then.

Now I am definitely fed up. It basically means I probably have to renegotiate the follow-up financing with my current bank, whether I like it or not? That wasn’t really the point (Well, probably for the bank it was!).

I will go through our documents. Thank you very much for the information.

We have two loan components: One is €110,000 at 1.65%, term until 2031. So this one is not the subject here.

Component 2: Taken out for €175,000, currently outstanding €153,000 at 3.11% (2012, hence the higher interest rate). The interest rate fixed period ends on 01/30/2022, so in 58 months

Which component is at which position in the land register? This is not clear from the information. And are these with different banks?

Yes, that is always the case. The land charge including rank is not assigned.

I thought with a complete assignment of this land charge the rank does not change?

I thought it depends on the constellation. For example, return claims are assigned (etc), or the purpose declarations.

However, to my knowledge, an assignment can be prevented by the first bank depending on the purpose declarations.

The component to be financed is entered in No. 1, the one running until 2031 in second rank. There are two separate banks. I will study the loan conditions this evening.