After the fixed-interest period has expired: tips for optimal follow-up financing
The fixed-interest period of a loan comes to an end at some point and the question arises as to what happens now. Follow-up financing is necessary to pay off the balance of the loan and agree on a new fixed-interest period. But what options are there for follow-up financing?
The choice of the right follow-up financing can have an impact on the overall term of the loan and the amount of the loan costs. It is therefore important to look at the various options available. An extension of the fixed interest rate with the current bank, a debt restructuring to another institution or a combination of both options – all these variants should be examined by borrowers.
But it is not only the choice of follow-up financing that is important. Timing also plays a critical role. The earlier a borrower deals with the issue, the more time there is to find the optimal solution. In addition, early negotiations with the bank can possibly lead to better conditions.

Those who deal with the expiry of the fixed-interest period in good time and make an informed decision can benefit from favorable follow-up financing and thus save hard cash.
Keywords: fixed interest period, follow-up financing, extension of fixed interest period, rescheduling, timing, borrower, conditions, informed decision.
The variable interest phase begins after the fixed interest period has expired
After the fixed interest period expires, the variable interest phase begins for many borrowers. At this stage, the interest rate is based on the current market rate and can therefore change regularly. For borrowers, this means some uncertainty, as they cannot predict exactly how the interest rate will develop in the future.
However, the risk of rising interest rates can be reduced by choosing a longer fixed-interest period. However, borrowers must bear in mind that they usually pay higher interest during this period than with a variable interest rate. In addition, a longer fixed-interest period also entails less flexibility, as early termination of the loan is usually associated with high prepayment penalties.
Those who opt for a variable interest rate, on the other hand, can benefit from falling interest rates and thus save money. However, there is also the risk of rising interest rates, which can lead to higher charges. Borrowers should therefore inform themselves in detail about the various interest rate models before taking out a loan and make a decision that suits their individual needs and financial possibilities.
- Variable interest rate phase: interest rate is based on the current market interest rate
- Risk of rising interest rates can be reduced by a longer fixed-interest period
- Longer fixed-interest period means higher interest rates and less flexibility
- Variable interest rate offers potential for savings, but also risk of rising interest rates
Options after the fixed-interest period has expired
After the fixed interest rate period has expired, you as the borrower have various options. One option is to continue with the existing loan at the newly adjusted conditions. However, a comparison with other providers should always be made here to ensure that you do not miss out on better offers.
Another option is to repay the loan early. In this case, however, you should be aware of possible early repayment penalties that many banks charge for this option. Before deciding on early repayment, these costs should be carefully weighed up.
Furthermore, it is also possible to transfer the existing loan to another credit institution. This is a debt rescheduling, where better conditions can usually be achieved. Here too, however, the costs incurred, such as processing fees and other charges, should be carefully weighed up.
- Another option may be to extend the fixed interest rate period in order to continue to benefit from the current conditions.
- Ultimately, however, it always remains an individual decision as to which options are best for you as a borrower and which will bring you the greatest benefits.

It is therefore advisable to carefully consider various options before the end of the fixed-rate period and, if necessary, talk to an independent financial advisor to make an informed decision.
Clarification obligations of the bank after the expiry of the fixed interest rate period
After the fixed-interest period has expired, banks have an obligation to provide information to their customers. In particular, they must provide information about the effects of the expiration of the period. Most importantly, this means that the interest rate is now variable and can change. It is also important that banks inform their customers about the possible changes in monthly installments.
In addition, banks must inform their customers whether and what options are available to respond to the changes. This could involve, for example, adjusting the repayment or rescheduling the debt. It is important that banks fulfill their legal obligations to inform their customers comprehensively in order to avoid unpleasant surprises.
In the event of non-compliance with disclosure obligations, banks may be faced with claims for damages. Therefore, banks should carefully consider what information they provide to their customers and ensure that they are fully informed about all possible scenarios. However, customers should also actively inquire themselves and not be afraid to obtain further information if necessary.
- Overall, banks and customers alike should understand and implement the importance of clarification obligations after the fixed interest rate period has expired in order to minimize financial risks.
Options after the fixed-interest period has expired
The fixed-interest period is a period of time during which the interest rate on a loan is fixed. After this period expires, borrowers have several options that have advantages and disadvantages.
- Option 1: Follow-up financing
- Follow-up financing is a way to continue the loan. The borrower extends the contract with the bank and agrees on new conditions. The advantage is that the borrower does not have to look for a new lender. The disadvantage is that the terms of the follow-up financing are not always favorable.
- Option 2: Debt restructuring
- Debt rescheduling is an option to continue the loan with another bank. Advantageously, the borrower can obtain better conditions. The disadvantage is that the borrower has to bear high costs for rescheduling the loan.
- Option 3: Repayment of the loan
- Repayment of the loan is a way to repay the loan in full. The advantage is that the borrower no longer has to make any further payments and is debt-free. The disadvantage is that the borrower has to bear high costs for repayment.
Make decisions and take action: What to do after the fixed-interest period has expired?
As the owner of a property, you face many difficult decisions, especially after the expiration of a fixed-interest period. The most important decision you need to make is whether to extend the fixed interest rate or change banks.
If you decide to extend the fixed interest rate, you should carefully check whether there are more favorable offers available. Compare the offers of different banks using online comparison tools or contact an independent financial advisor who can help you to find the best offer.
However, if you decide to switch banks, be aware of the notice period on your mortgage loan. As a rule, the notice period for a fixed interest rate is one to three months before expiry. Make sure you take out new financing within this time period.
- Make sure you have enough equity
- Review your monthly budget to make sure you can afford the new interest
- Compare offers from different banks and choose the best deal
In any case, it is important that you take time to consider all options before making a decision. Make an informed decision and act in time to avoid unnecessary costs and risks. If you are unsure, you should always consult an independent financial advisor before making a decision.