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Do I have to pay out the interest on my fixed interest mortgage?

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I am considering selling my German apartment as I am now living overseas. It's currently rented, the tenant may want to buy it. I now can't even visit it due to COVID. The bank (ING Diba) have told me I have to pay out the interest owed for the remainder of the fixed interest period if I sell. I have owned the place since 2007 and entered into a second fixed rate interest period not realising the consequences of this if I sold.

 

I read online that you can have a Sonderkuendigungsrecht (sp?) or special cancellation right in certain circumstances, the example given was that the person got a job in another town.

 

Has anyone done this successfully? I really don't want to pay thousands of euros I didn't realise I would owe if it is avoidable.

 

Thanks!

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It is usually possible to ask the new buyers to take over your existing credit. Then they just get a 2nd credit if needed for any additional amount required.

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I had the loan for 10 years already, but I signed up for a new interest rate. I didn't understand at the time that that meant I was locked in for 10 years again.

 

I don't think the new buyers would take over my credit because interest rates are lower now...

 

I am wondering if I can get a special cancelation right because I am no longer in Germany...

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When you sell, your bank will calculate the interest that they will lose out on for the remaining time period of the loan, that will be deducted from the sale price... if you are in negative equity in the property, you will be worse off... if you have capital, then you will get the capital minus the lost interest deposited into your bank account...

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There are some internet calculators for  Vorfälligkeitsentschädigung 

eg  Immowelt Vorfaelligkeitsentschaedigungsrechner

 

 

It's unlikely that you'll get out of having to pay their lost interest (less some charges that won't crop up).

IMHO Just leaving the country won't convince them to let you off the hook.

 

Sorry that I can't help you - but everyone else thinking of taking out a loan

should consider the option of paying higher interest but having the option to 

pay off the loan earlier. Maybe an employer pays a bonus ?

That could go towards paying off the loan. Everyone's circumstances are different.

 

Good luck and I hope the current tenants stay until the end of the contract!

 

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