Interest during construction: debt restructuring not always worthwhile, despite low-interest rates

Real estate loans have never been to have as low as now. Therefore, many a homeowner thinks about debt restructuring. But not worthwhile in all cases. In particular, the Bank has to play along.

Hypothekenkredite ten-year period currently cost a mere 2.6 percent interest a year. Never before has Bargeld as low in Germany. For many homeowners seem to give the chance now to replace existing loans. Those who had received a ten-year loan around the summer of 2008, since then pay on average to more than 5 percent interest. So there seems to be a good time to reduce the interest burden significantly.

But that simple statement is not. “A withdrawal from the contract the bank must agree in principle only once,” Stefan Ulbrich, managing partner of the mediator of real estate financing home says & Living. In practice, a willingness to currently differ widely. Good chances there at low residual debt amounts of less than 30,000 euros and short maturities. Other industry experts confirm that. Possibilities there are for customers of banks that restructure its mortgage business, such as LBBW, currently delivers it to the alliance.

Currently, debt restructuring is not attractive

But even if the bank agrees, the question of whether this is worth it remains. Currently is not very attractive, it is, from banking circles. Because the compensation they deserve the bank is measured by the spread between Altkredit and give this money over the remaining term of the options the bank. So currently arises between a 10-year loan from 2007 and the average interest rate for four-year loans sometimes a span of just over 4 percentage points. Most of the requests currently come from borrowers, the loans have recorded in the range of 4.5 percent, says Ulbrich. But with maturities of up to three years, the prepayment penalty amounts rapidly to about 10 percent of the remaining debt. Anyone who receives an offer from his bank, which must add up when pays a debt restructuring. This may take longer than would have been the term of the original loan may.

Packages can, therefore, be hard to tell when the rescheduling is worthwhile in any case. Not least because details of the calculation of the banks are handled differently. Not every financial institution does not expect unused repayment rights. Because it is considered that the borrower’s credit in the coming years would have some regular repay the interest loss is less pronounced. The same applies to a contractually-insured right to increase the repayment rate. Very few banks are willing to take this into account. Highest Judicial rulings on these issues there are not yet present. A request cannot hurt any case, even if the financing bank is often enough to make an offer.

Interest in construction and call money rates have fallen to a historic low

For loans with maturities of less than two years early settlement with the aim of restructuring rare worth, says Ulbrich. Usually, property owners who wanted to play it safe the historically low-interest rates secured, then a stock loan. The so-called forward loan will be paid at a later date, but the interest rate fixed for the current conditions. For this, the banks charge interest premiums. In the direct bank, ING-Diba about this are loans that are paid in the current year, at less than 0.2 percent. For individual banks, this was possible without interest premium of up to 18 months in advance. And who can replace an expensive loan without refinancing because he has enough equity that should do it if he can, says Ulbrich. A higher risk-free rate of return is not going to get the time. Not only the interest during construction, the overnight interest rates have fallen to an average of only 0.99 percent, a historic low.