Set the repayment schedule in advance?

Hello, I am new here in the forum.

At the moment I am considering how to approach the upcoming follow-up financing. For my house purchased 6.5 years ago, I took out 145 thousand euros. Divided into 3 loans.

The two first-ranking loans at Sparkasse and Kfw (interest rate fixed until November 2019) and another loan at VR-Bank (full repayment - not first-ranking in the land register), which ends in November 2024.

I have calculated that to repay the two loans at the end of 2019, I will take out a forward loan of 74 thousand euros with a term of about 8.5 years, which I will repay at 7% in the first 5 years. After 5 years, when I no longer have to service the VR loan, the repayment rate is supposed to be raised to 20%.

My question is whether such high repayment jumps can be agreed upon in advance with a bank.

A loan where one can adjust the repayment multiple times during the term would also be an option. But I do not know if such differences in repayment are allowed.

Alternatively, I would take out a forward loan only for 5 years. And after 5 years then take out another follow-up financing for the rest. But that would again carry the risk of rising interest rates.

If necessary, I could take out a forward loan with 7% repayment during the entire term of about 9 years, where I allow myself 10% special repayments per year.

I am currently still undecided. I would be very grateful for your opinion. Thank you very much, Poldi.

Most loans have free repayment rate changes as a standard. For you, it will practically be a full repayment loan. I see problems with the assignment of the land charge. The VR loan would move to rank 1 if you change the bank. Alternatively, I would invoke Baugesetzbuch 389 and completely refinance everything. It is already worth asking for loans now. Brokers also offer banks with longer waiting periods.

What does Baugesetzbuch 389 mean? If it becomes a full repayment loan, would that be a problem with an annual special repayment of 10%?

What does Baugesetzbuch 389 mean? If it becomes a full repayment loan, would that be a problem with an annual special repayment of 10%?

Usually, it is 5% per year. Whether you find a bank with 10%, including full repayment, the experts or the broker know. Sorry Baugesetzbuch 489 paragraph 2. You can terminate the loan contract prematurely after 10 years with 6 months' notice without prepayment penalty. When was the VR loan taken out?

VR only at the end of 2014. I used it to repay a Wfa loan from the NRW.Bank. It runs for 10 years as a full repayment loan.

I don't want to give you any hopes now, but probably no bank will go into subordination. And the VR will not assign it either. You have hopes for a restructuring with the VR.