Pledge exchange - is it possible to have two banks in the land register?

That cannot be answered in a general way, every bank does it in its own way.

The bank will in any case assess the security using its own methods. The "opinion" of a broker plays absolutely no role. Where this stands in comparison to the market value cannot be easily answered.

In the end, you should simply go to the bank and clarify everything with them. Everything else is just philosophy.

Good evening everyone,

We now have another question regarding our concern with the pledge exchange. Since today, this option is being reviewed by the Sparkasse (the apartment appraisal is underway).

What we have been wondering: can the pledge exchange against the apartment for the next financing become disadvantageous in the sense that, in the eyes of the new bank, we would have debts with another bank (the previous Sparkasse), even if these run on a different property (apartment?)?

The situation would then be:

House debt-free, value €700,000
Apartment, value €550,000, loan €130,000 at the Sparkasse

So if we now take out the new financing for the new house of, for example, €170,000 at ING, is that a reason for them to charge us higher interest rates or even refuse the loan because we have debts with another bank (Sparkasse) and in the unlikely event of insolvency would have two creditors? Or, since there are two different properties, is this problem rather not present?

We fear that transferring the loan to the apartment might put obstacles in the way of refinancing.

Thank you very much in advance!

No, that is not a problem. Banks do not care at which other banks other properties are financed. The only important thing is that the income matches the debt burden and you can easily service all debts. But even without knowing the figures, I can hardly imagine that this should be a problem here.

You are worrying too much.

and in the unlikely event of insolvency, would there be basically two creditors?

If you stop servicing your loans, the bank can simply and quickly send the house where the respective mortgage is registered to foreclosure. If the proceeds do not cover the debts, you will of course have to sell the rest as well, but this is much more time-consuming and complicated for the bank to enforce.

: thank you very much again for the response, as a layperson I actually have many fears of doing something wrong. Unfortunately, we also haven't found a truly neutral advisor, our I...h..p advisor didn't even mention the possibility of the collateral exchange (which I suspect is because his commission depends on the new loan volume, the more we take out anew, the better for the commission – and that's probably the case with all advisors). Therefore, I am grateful for the collective knowledge here!