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German Mortgages
Does anybody know if I can get an Interest Only mortgage from a German bank? I mean, do they do them?
The only way I know you can do this is if you tie the mortgage to a life insurance policy (or Bausparvertrag)...
strangely not something that they seem to go in for much here.
However, a friend of mine (financial advisor) was talking to me a few years back, and what he described seemed to be the concept of an endowment mortgage. Think he called it "deferred interest", but not sure.
He worked for MLP at the time, so it might be worth giving them a call.
However, a friend of mine (financial advisor) was talking to me a few years back, and what he described seemed to be the concept of an endowment mortgage. Think he called it "deferred interest", but not sure.
He worked for MLP at the time, so it might be worth giving them a call.
If you're looking for an 'interest only' with the promise that you'll have the lump sum ready at the end, you're likely to be disappointed.
We have one. But you need a good relationship with the bank first, because they weren't too keen on it. We had to more or less prove to them that it's most likely we'd pay it back early (it's a floating rate).
The mortage market in Germany is not very innovative. Reflects the stagnant nature of the housing market. Now if only the government would remove the tax burden on profits on your first home, it could get more exciting.
The mortage market in Germany is not very innovative. Reflects the stagnant nature of the housing market. Now if only the government would remove the tax burden on profits on your first home, it could get more exciting.
But then everyone will start buying and selling, talking about "housing ladders" , "first time buyers" and other unsavoury anglo-saxon habits. And that will cause property prices to rise and with that rents to increase.
No thanks! Keep things as they are!!
No thanks! Keep things as they are!!
QUOTE
Does anybody know if I can get an Interest Only mortgage from a German bank? I mean, do they do them?
Good god, mine feels like an interest only one, got the statement the other day and I paid like 2€ off the balance the rest was interest
QUOTE (tim hortons man @ Mar 15 2006, 06:48 PM) 
Good god, mine feels like an interest only one, got the statement the other day and I paid like 2€ off the balance the rest was interest
Oh man, I know that feeling
Hello!
I found this site when I was browsing the other night. I wish I'd known of it before when we were in the process of buying:
http://www.interhyp.de/baufinanzierung/
There is a load of information there on all aspects of house buying, mortgages, letting etc. It's in German but clearly set out and not too incomprehensible if your German's middling. And yes, the interest only concept is there and information about the way to finance the repayment, but I didn't read that in detail. Hope it helps.
I found this site when I was browsing the other night. I wish I'd known of it before when we were in the process of buying:
http://www.interhyp.de/baufinanzierung/
There is a load of information there on all aspects of house buying, mortgages, letting etc. It's in German but clearly set out and not too incomprehensible if your German's middling. And yes, the interest only concept is there and information about the way to finance the repayment, but I didn't read that in detail. Hope it helps.
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