Follow-up loans and term loans in comparison

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Written By Kampretz Bianca

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Borrowers whose fixed interest rate is coming to an end should arrange their follow-up financing in a timely manner. Because your bank’s first extension offer is rarely the best offer. Our current interest rate comparison shows how you can save thousands of euros with the cheapest provider.

Why is follow-up financing worth comparing for you

Test results

Our interest rate comparison shows the conditions of 70 banks, insurers and intermediaries for follow-on loans and term loans with a delivery period of 2, 3 and 4 years and a fixed interest rate of 10 or 15 years (fixed date: May 14, 2018). 2024). With the cheapest offers, borrowers can save more than 20 thousand euros in interest, depending on the case.

The right follow-up financing for you

In our comparison calculator you can adapt the search to your needs – for example according to the criteria of when you need the follow-up loan and how long the fixed interest rate should be.

Tips from the experts

The credit experts at Stiftung Warentest explain how you can get your follow-on loan, why you don’t need to be afraid of changing banks and who a term loan is worth for.

Magazine article in PDF

When you unlock the topic, you will have access to the test report PDF Financial test 7/2024.

Follow-up financing
This is how you get a cheap follow-up loan

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Follow-up loans and term loans in comparison

The follow-up financing comparison from Stiftung Warentest shows different loan variants. There is something for every need:

  • In the first variant, the customer opts for a loan with a fixed interest rate for ten years, which ends up resulting in a remaining debt of around 100 thousand euros.
  • The second variant involves a full repayment loan with a term of 15 years.
  • For both variants, the comparison shows offers for a follow-up loan that is available immediately and for term loans that only pay off the remaining debt on the existing loan in several years – under conditions that are already firmly agreed with the bank today.

The model case for comparison was the financing of a remaining debt of 200,000 euros for a property worth 400,000 euros.

What you should pay attention to when it comes to follow-up financing

The Stiftung Warentest study shows the importance of comparing suppliers. There are currently 1.1 to 1.5 percentage points between the cheapest and most expensive suppliers. In our model cases, borrowers can save up to €25,500 if they choose a cheap provider.

But it’s not just the interest rate that’s important. The framework conditions for follow-up financing must also be adequate. Borrowers should consider how much flexibility they need for repayment and what monthly payment they can afford over the long term.

Leader today, maybe just midfield tomorrow

For our interest rate comparison, we queried the conditions for follow-on loans and term loans from 78 banks, brokers and insurers for a model case. 70 institutes participated in the comparison. In the model case, the property has a value of 400 thousand euros. There is still an outstanding debt of 200 thousand euros from the first loan, which now needs to be financed.

Our evaluation shows cheap providers and big differences in interest rates. Important to know: Interest rate comparison only provides initial guidance. Interest rates depend on many factors, for example the loan amount, equity and property.

Furthermore, they change Conditions for real estate loans currently daily. A supplier that is at the forefront today may end up in the middle of the field tomorrow.

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