These are the best flexible mortgage loans
Expensive loans and high construction costs are currently making life difficult for builders, buyers and modernizers. Nevertheless, the home ownership project can succeed. However, it is important to pay attention to more than just the interest rates when financing, advise the experts at FMH-Finanzberatung.
Ten interest rate hikes in 16 months: This strategy of the European Central Bank has caused the real estate market in Germany to collapse dramatically - and with it the demand for construction financing. According to the FMH database, the average interest rate for EUR 400,000 (80 percent loan-to-value) with a fixed interest rate of ten years is 4.16 percent. In comparison: in November 2021, customers were still able to finance for an average of 1.15 percent.
According to FMH, anyone who dares to take on the project of home ownership despite high interest rates (and still proud property prices) must therefore calculate particularly carefully - and not only pay attention to the interest rates when choosing the right loan, but also adapt the repayment conditions to their own needs.
What doesn't fit (anymore) is made to fit
In times of high interest rates, it is essential to keep the monthly burden manageable. This does mean that the remaining debt melts away rather slowly. However, this is manageable if the loan allows flexible repayment options that enable customers to react to changes in their financial situation.
On behalf of ntv, FMH-Finanzberatung therefore determined which banks currently offer their customers the most adaptable loan agreements. The Frankfurt experts paid attention to the following factors:
Generous lead time. Building loans do not only cost money when they are paid out, but often even before that. This so-called commitment interest can quickly become a burden if construction is delayed and customers have to pay interest on an unclaimed loan in addition to the regular rent. The longest possible lead time without commitment interest is therefore of the utmost importance, especially for builders and modernizers.
Special repayment options. The higher the interest rates, the more important it is to have the option of making unscheduled repayments in addition to monthly installments. Even with long-term fixed interest rates, customers can terminate their loan prematurely after ten years and repay it in full or in part at no extra cost. This is according to §489 BGB. However, anyone who can expect additional income in the first few years of the term - for example through an inheritance or an upcoming promotion - should definitely plan for unscheduled repayments.
Repayment modification. Even more important than the possibility of unscheduled repayments is to reserve the right to make a fundamental repayment change. And in both directions. This allows you to increase the monthly installment in good times - and reduce it in bad times.
Important: Customer-friendly banks should not charge an interest premium for the sheer possibility of such changes. It is better to charge a fee for changes that are actually made.
These are the best flexible building loans
The winners among the nationwide institutions are: DEVK - the insurance company is particularly good when it comes to commitment interest and special repayments. Signal Iduna - the building society shines when it comes to special repayments and changes to repayments.
The two direct banks 1822direkt and ING stand out from the vast majority of competitors in terms of commitment interest rates and repayment changes.
Among the regional banks, PSD Bank Koblenz and Sparda Bank Südwest are in the top two places. Both banks are almost on a par in terms of the flexible criteria. Customers only have to decide whether they place more value on the special repayment or the change in repayment.
You can find the best current interest rates for your home loan in the ntv home loan comparison.
- Despite the high interest rates and expensive real estate loans, experts at FMH-Finanzberatung advise cautious homeowners to consider more than just interest rates when financing their projects.
- Inflation and high construction costs have made real estate prices steep, making it challenging for builders and buyers to secure real estate loans with manageable monthly payments.
- Taking on home ownership projects during these times requires careful calculations, and tenants seeking affordable condominiums might find it challenging due to rising prices and interest rates.
- The construction industry is dealing with the effects of high interest rates, and landlords may need to adjust rental prices to accommodate these changes.
- Many lenders are now offering flexible mortgage loans with adaptable repayment options and lower commitment interest, making it possible for customers to manage their monthly payments while maintaining the flexibility to modify their repayment terms in response to changes in their financial situations.
Source: www.ntv.de
