Loan Agreement - Save Building Savings Contract First?

Hello, I have a question.

Regarding my situation, I am currently repaying two loan contracts, one of which will be paid off shortly, so I would have a bit more money available. Now I am considering how to proceed, either to save the additional money I have available and make an annual special repayment of 5% (which was agreed in writing on a voluntary basis) or increase the repayment rate from the current 3.4% to 10%. I think I could reduce it again after a few years if necessary.

So the question is whether it makes no difference how I do it, since it basically comes to the same thing or ...?

With my loan contract, a home savings contract is first accumulated, and when it qualifies for allocation, it is paid into the loan contract and then the rest is repaid, all over a total of 20 years at 3.4% repayment.

Regards abo68

Is the possibility to change the repayment contractually agreed? With a fixed interest rate and secured by land charges, I otherwise see dark grey for this option.

Hello,
yes, I can have the repayment increased, I don't know yet how much I can have it increased but I think there won't be a problem, I will ask on Monday.

Ing-Diba?

sparda!

Often, you can have the sum adjusted up or down by 1%, or reduced to 1% repayment for bad times (a bank is usually not interested in the loan defaulting). This change must of course be included in the contract.

Prepayments cost a bit more because you always pay a slightly larger portion of interest for 11 months than if you had a little less each month (compound interest...). The difference is not significant.