Follow-on financing arranged in good time
Fixed-interest period ending? Secure your terms now.
Follow-on financing is the loan that continues to finance the remaining debt once the fixed-interest period ends. You can extend with your current bank (prolongation), switch to another bank (refinancing) or secure the rate up to 60 months in advance (forward loan). Nordfinanz compares more than 600 banks for this and checks which route saves the most on your remaining debt.
Updated on 16 October 2026
When your fixed-interest period ends, the right timing can sometimes be worth thousands of euros. We check what saves you more: extending with your bank or switching to a cheaper institution, if you wish with a forward loan years in advance.
What we take care of for you
- Refinancing on better terms
- Forward loan: secure rates up to 60 months in advance
- Comparison of more than 600 banks instead of an unchecked extension with your current bank
- Reassessment of your repayment & term
Up to 5 years’ lead time
With a forward loan you secure today’s rates for tomorrow.
Honest comparison
We compare your current offer objectively with the entire market.
Savings made visible
You see in black and white how much refinancing saves.
Follow-on financing explained clearly
What is follow-on financing?
A mortgage is rarely fully repaid by the end of the fixed-interest period. For the remaining debt you need a new interest rate, and that is exactly what follow-on financing arranges. It decides how expensive your loan will be over the next ten or fifteen years, making it financially about as significant as the original agreement.
Your current bank’s offer usually arrives automatically by post a few months before the end. Convenient, yes; cheap, often not: the bank knows that many clients sign out of habit and calculates accordingly. An independent comparison shows you what the market really offers.
Your three options at the end of the fixed-interest period
With a prolongation you extend the loan with your current bank on new terms. This is the simplest route, because neither the land register nor the bank changes. Whether the offered rate is fair, however, only becomes clear in a comparison.
With refinancing you move the remaining debt to a cheaper institution. The land charge is assigned to the new bank. This usually costs a few hundred euros, which quickly pays for itself if the interest difference is noticeable.
With a forward loan you secure today’s terms for follow-on financing that only begins in a few years. Depending on the bank, this is possible up to 60 months in advance. For the waiting period, the bank charges a small interest premium, which in return gives you planning security.
Your special right of termination under Section 489 of the German Civil Code
Many owners do not know this rule: ten years after the funds have been fully released you may terminate any property loan with six months’ notice, with no early repayment charge at all (Section 489 BGB). So if you agreed a fixed-interest period of 15 or 20 years, you can renegotiate or refinance after just ten years if interest rates have become more favourable.
The right timing
The first market check is worthwhile at the latest three years before the end of the fixed-interest period, because from then on forward loans are available without large premiums. If you only act in the last month, you negotiate under time pressure and often take the first offer. If you wish, we keep an eye on the date for you and get in touch in good time.
Further reading: Guide: when refinancing pays off· Guide: fixed-interest period and repayment· How our advice works
Follow-on financing: answered briefly
Ideally 36 months before the end of the fixed-interest period, because from then on forward loans are available at low premiums. At the latest six months beforehand you should compare offers so that there is enough time for refinancing.
If you do not respond to your bank’s extension offer, the loan often continues at a variable rate. That rate can change at any time and is usually well above the terms of a new fixed-interest period. Doing nothing is therefore the most expensive option.
When switching banks, the land charge is assigned. The notary and land registry together usually charge a few hundred euros for this, depending on the amount of the land charge. With a noticeable interest difference, you often recoup these costs in the first year.
A forward loan is insurance against rising rates: you pay a small premium and in return know today what your follow-on financing will cost. If rates fall sharply, waiting would have been cheaper. We compare both scenarios with your figures before you commit.
Related guides
Follow-on financing: when refinancing pays off
Is your fixed-interest period ending? When an extension, refinancing or a forward loan pays off and how much a real market comparison can save.
Combining fixed-interest period and repayment wisely
Fixed-interest period and repayment rate together determine how safe and how expensive your mortgage will be. This is how you find the combination that suits you.
Making the most of KfW & subsidies
Which subsidy programmes are available from KfW, NBank and proKlima, and how to combine subsidies cleverly with your mortgage.
More solutions
Let’s talk about your project
The initial consultation is non-binding. You tell us about your project, we tell you honestly what is possible. Then you decide at your own pace.
