Repay building savings contract in loan phase through cheaper loan

Hello,

in a consultation it was said that if the building savings contract enters the loan phase in 10 years and the interest rates are then cheaper than the ones fixed today, you can simply take out a loan with the cheaper interest rates and use it to fully repay the loan from the building savings contract.

Has anyone here done this before? If the bank that issues the new loan is not the same as the one where the building savings contract is held, then the land register must also be changed, right?

Yes, you can do that. Normally, in a building savings loan (so in the loan phase), you have a 100% special repayment right. It doesn't matter then whether repayment is done through equity or through external loans.

And yes, the new bank will gladly want the land charge share of the building society, at least the part they need for their new loan.

That means only the land charge/notary fees will apply for the transfer of the land charge.