Follow-up financing comparison 2026: secure top rates before your fixed-rate period ends.
Today, follow-up financing means more than asking your house bank for a new offer. Anyone who continues the residual debt of their mortgage smartly can save several thousand euros depending on residual debt and fixed-rate period, provided the comparison happens in time. On this page we show you how follow-up financing works, which interest rates are realistic in 2026, which three paths (prolongation, refinancing, forward loan) are available, and what to look out for in a robust follow-up financing comparison. We make this transparent, non-binding and pressure-free, you keep the decision in your hands at every step.
The most important points at a glance:
- Follow-up financing is the continuation of your residual debt once the fixed-rate period of your original mortgage ends.
- There are three main paths: prolongation (with your existing bank), refinancing (to a new bank) and forward loan (lock in the rate up to 60 months in advance).
- Current mortgage rates for follow-up financing in April 2026 range between 3.49 % and 3.89 % (10-year fixed-rate period, top conditions).
- Comparing almost always pays off: a difference of just 0.3 percentage points means about €6,500 in savings on €200,000 residual debt over a 15-year remaining term.
- Ten years after the full disbursement of your original loan, the special termination right under §489 BGB applies, with a six-month notice and no early repayment penalty.
- Optimal timing for the comparison: 12 to 36 months before the end of your fixed-rate period, for a forward loan even up to 60 months ahead.
- Our advice is SCHUFA-neutral and non-binding, the broker fee is paid by the bank, you incur no additional cost.
What is follow-up financing?
Follow-up financing is the continuation of the residual debt of your mortgage once the originally agreed fixed-rate period ends. Since mortgages in Germany are typically not rate-locked for the full term, common fixing periods are 5, 10, 15 or 20 years, there's almost always a residual debt left at the end of the first fixed-rate period. This residual debt has to be refinanced: either with your existing bank or with a new bank. An example: in 2016 you took out a €350,000 loan with a 10-year fixed-rate period and 2 % repayment. The fixed-rate period ends in 2026, by then you've paid down about €78,000, leaving a residual debt of around €272,000. That sum has to be refinanced, and that's exactly where follow-up financing comes in.
Distinction: follow-up financing vs. refinancing vs. forward loan.
The three terms are often used interchangeably in everyday language but describe different paths to follow-up financing. Follow-up financing is the umbrella term. A prolongation is follow-up financing with your existing bank, refinancing is the switch to a new bank, and a forward loan is follow-up financing with an early-locked interest rate that pays out at a later date. We cover all three in detail in section 3.
The three paths of follow-up financing.
There are three established ways to handle a follow-up financing: prolongation with your existing bank, refinancing with a new bank, and a forward loan with rate hedging before the loan agreement runs out. Which path is right depends on the rate environment, the time horizon to the end of your fixed-rate period and your personal need for security.
| Path | Pros | Cons | Best fit |
|---|
| Prolongation (with the house bank) | Convenient, no new land-charge entry; creditworthiness check usually shortened | Rarely the top rate; the bank knows the switching hurdle is high; no real market comparison | Very small residual debts, very tight schedule, existing customers with negotiating leverage |
| Refinancing (with a new bank) | Top conditions through nationwide comparison; often 0.2–0.5 percentage points below the house-bank offer; full freedom on conditions (repayment, special repayments, repayment-rate changes) | Effort for the land-charge assignment (~0.2 % of the land charge); new creditworthiness check; about four to eight weeks processing time | Residual debt > €75,000, fixed-rate period ends in 1 to 12 months, good creditworthiness |
| Forward loan | Rate is fixed up to 60 months in advance; protection against rising rates; clear planning certainty | Forward premium (typically 0.01–0.03 % per month of lead time); take-up obligation; missed opportunity if rates fall | Fixed-rate period ends in 12 to 60 months, you expect rising or stable rates |
Prolongation, the convenient path.
With a prolongation, your existing bank extends the loan at new conditions. Advantage: no new land-register entry and no new creditworthiness check. Disadvantage: house banks usually price prolongations significantly higher than initial loans because they count on their customers' inertia. A neutral offer from another bank is therefore always a sensible comparison, even if you ultimately stay with your house bank.
Refinancing, the typical savings path.
With refinancing, a new bank takes on your residual debt and with it the land charge. Formally, the switch usually happens via a land-charge assignment, the old bank assigns the land charge registered in the land register to the new bank. The cost for that is around 0.2 % of the land-charge amount (example: €200,000 land charge → about €400 in notary and bank fees). These costs amortise within the first year given an interest saving of 0.2 percentage points and €200,000 residual debt. Practically all nationwide banks offer refinancing, comparing through our experts with access to several hundred banks is significantly cheaper than going direct.
Forward loan, locking in rates in advance.
A forward loan is a special form of refinancing (or prolongation) where your interest rate is fixed months or years before the actual end of the fixed-rate period. Forward phases of 12 to 60 months are common. The bank charges a forward premium for that, typically 0.01 to 0.03 percentage points per month of lead time. Example: 24 months forward × 0.02 % = 0.48 percentage points premium on today's rate. Forward loans are particularly worthwhile if you expect rising rates or want planning certainty for several years. Important to know: you commit to taking up the loan, if rates fall by the maturity date, you still pay the agreed higher rate. Some banks also offer periods of 1–12 months without a forward premium. If you're considering a forward loan, we recommend running a detailed calculation together with an advisor. That way you can be sure you're really making the right decision. Our financing advisors are happy to help.
When should you start with follow-up financing?
Ideally you start the follow-up financing comparison 12 to 36 months before the end of your fixed-rate period. Anyone who is earlier keeps all options open with a forward loan, anyone who is later risks signing under time pressure in an unfavourable rate environment.
The ideal timeline
| Time to end of fixed-rate period | Recommended action | Rationale |
|---|
| 60–37 months | Watch the market, check forward conditions | Forward possible, but premium still high |
| 36–13 months | Sweet spot for a forward loan | Premium moderate, rates locked long-term |
| 12–4 months | Final comparison, kick off refinancing | Refinancing processing takes four to eight weeks |
| 3 months before end | Bank sends prolongation offer | Add a comparison offer |
| < 4 weeks | Emergency-only prolongation | High risk of paying a markedly inflated rate |
Good to know:
You can already arrange a forward loan 36 months before the end, at some providers even up to 60 months in advance. Depending on the bank, the disbursement is free of charge for 1–12 months, and only beyond that does a forward premium apply. Anyone considering the forward-free phase should match the current market with their own risk assessment, see section 3.3.
Savings potential: what a follow-up financing comparison really brings.
A thorough follow-up financing comparison can mean savings of several thousand euros depending on residual debt and rate difference. The following example calculation shows how big the effect of even small rate differences can be.
Example calculation: €200,000 residual debt, 15-year fixed-rate period
| Scenario | Effective rate | Monthly rate (2 % repayment) | Total cost over 15 yrs |
|---|
| A, house-bank standard offer | 3.99 % | €998 | €179,640 |
| B, comparison + top provider | 3.49 % | €915 | €164,700 |
| C, top provider + 0.5 % higher repayment | 3.49 % | €1,082 | €164,700 (shorter remaining term) |
The difference between scenarios A and B is about €14,940 in interest savings over 15 years, on €200,000 residual debt with a rate difference of just 0.5 percentage points. With larger residual debts (e.g. €400,000), the savings effect doubles accordingly.
Rule of thumb to take away
Per €100,000 of residual debt and per 0.1 percentage point of rate savings, you save around €1,000 over ten years, and pay down faster on top, because at the same monthly rate a larger share goes into repayment.
Which costs apply to a follow-up financing?
The direct cost of switching providers in a follow-up financing is typically about 0.2 % of the residual debt, significantly less than for an initial mortgage, because notary and land-register costs only partially apply again.
Cost overview (typical ranges)
| Item | Typical amount | Who pays / when |
|---|
| Land-charge assignment (notary + bank) | 0.2 % of the land charge | On bank switch; usually €200–600 |
| Processing fee at the new bank | €0 | Forbidden since the BGH ruling in 2014 |
| Forward premium | 0.01–0.03 %/month | Only with forward loans, included in the effective rate |
| Notary land-charge cancellation (optional) | approx. €600 per €100k | Only on full payoff, not on a switch |
Important:
With a refinancing, your existing land charge is usually not cancelled and re-registered, but assigned to the new bank, that saves significant notary fees. A full re-registration would cost around 0.8 to 1 % of the loan amount, an assignment only about 0.2 %.
What does a follow-up financing through Navera cost?
Finding a follow-up financing with the Navera comparison calculator doesn't cost you a cent extra. Just enter all your information and pick a fitting offer. For questions, our experienced financing advisors are at your side, free of charge. The brokerage fee is paid by the bank if a contract comes through. We are a financial advisor and only get paid when your comparison leads to a closing.
Special termination right under §489 BGB.
Ten years after the full disbursement of your loan, you may terminate your mortgage at any time with a 6-month notice, without an early repayment penalty. This applies regardless of the originally agreed fixed-rate period. So if you opted for a 20-year fixed-rate period in 2017, for example, you can usually terminate from 2027, a valuable right, especially in a low-rate environment. Concretely: if your 10-year mark is approaching and current rates are lower than your running rate, it's worth considering a refinancing. The bank may not demand an early repayment penalty in that case, quickly saving thousands on large residual debts.
Which factors influence your follow-up financing rate?
Six factors determine your individual rate, and you have active influence on four of them. Knowing these levers, you can often improve your conditions by 0.1–0.3 percentage points.
| Factor | Influence | How you can affect it |
|---|
| Loan-to-value (residual debt / property value) | Very high | Special repayments before the end raise your paid-down share → lower loan-to-value → better rate (steps at e.g. 60 %, 80 %, 100 %) |
| Creditworthiness / SCHUFA score | High | Run a SCHUFA self-disclosure via Bonify, reduce overdrafts, keep your bank account and don't switch in the year before the follow-up financing |
| Repayment rate | Medium | A higher repayment rate (3–5 %) signals a shorter risk horizon and often leads to a small rate discount |
| Residual debt / loan amount | Medium | Very small loans (<€50,000) often get worse conditions |
| Market rate (10-year Pfandbrief) | Very high | Not influenceable, a forward loan can hedge the risk |
| Fixed-rate duration | Medium | Longer binding = higher rate, but more security |
Bringing equity in, worth it or not?
Putting equity into the follow-up financing can be worthwhile if it gets you below a loan-to-value threshold (60 % or 80 %). Even €1,000–5,000 can noticeably improve your rate, because many banks calculate in steps. An example: your residual debt is €220,000, your property is worth €350,000. Loan-to-value = 62.9 %. If you bring in €10,000 equity, your residual debt drops to €210,000 and the loan-to-value to 60.0 %, the bank moves you into a better conditions class, which at some providers means 0.1 to 0.2 percentage points of rate savings. Over 15 years and €200,000 residual debt you save €3,000–6,000, for a €10,000 equity outlay. Compared with an overnight-deposit yield of 1.5 % over the same period (= €1,500 in interest), the effect is significantly higher.
When it's not worth it.
If you're already below 60 % loan-to-value, additional equity usually no longer brings a rate improvement. In that case, keep the liquidity as a safety reserve, or use it for special repayments, which are legally permitted up to 5 % of the original loan amount each calendar year. If you're unsure what makes sense for your situation, we'll happily run the numbers with you.
Alternatives to classic follow-up financing.
Beyond the three classic paths, two alternatives are commonly named: building society contracts and KfW promotional loans. Both have narrow use cases, as full replacements for follow-up financing they're rarely suitable.
Building society contract as follow-up financing.
A building society contract that is allocated today carries a rate that was fixed when the contract was signed five to ten years ago. If that rate is below the current market rate, the building society loan variant is a real alternative, though usually only up to the building-savings amount (typically €50,000–150,000). For the remainder of your residual debt a regular follow-up financing is still needed. A newly signed building society contract, on the other hand, almost always serves the next follow-up financing in seven to ten years, not the current one.
KfW promotional loans.
KfW grants promotional loans mainly in the context of energetic refurbishments. For a pure follow-up financing without refurbishment work, these programmes are not available. But if you modernise at the same time (e.g. heat pump, insulation, window replacement), you can combine KfW funds with your follow-up financing, the conditions are sometimes below the market rate. Advice on such combinations is part of our standard service.
Interim conclusion on alternatives.
For about 95 % of all follow-up financing cases, prolongation, refinancing and forward loans remain the right choice. Building society contracts and KfW funds are useful complements but don't replace the comparison.
Conclusion: follow-up financing comparison 2026, what's left?
A follow-up financing comparison is one of the few financial decisions where several thousand euros can be at stake. Anyone who systematically compares 12 to 36 months before the end of the fixed-rate period keeps all options open, from forward loan via refinancing to a negotiable prolongation.
The most important points from this guide at a glance:
- Know the three paths, prolongation, refinancing, forward loan, and combine them situationally.
- Start early, the ideal comparison window is 12 to 36 months before the end of your fixed-rate period.
- Insist on market transparency, only that makes a real price comparison between offers possible.
- Optimise loan-to-value, sometimes €5,000 of equity is enough for a 0.1–0.2 % better rate.
- Check the special termination right, §489 BGB applies ten years from full disbursement.
- Compare via market reach, our independent experts have access to several hundred banks; house-bank offers are rarely top conditions.
Your next step.
Use our follow-up financing calculator for a first rate indication based on current rates. Afterwards you can independently view and compare the available follow-up financing offers from the banks. For follow-up questions, our financing experts are at your side, at no cost to you. We give you everything for a fast and transparent search; the decision stays with you.
