Renewing mortgage in Germany

M

Marykate

Guest
Dear all,
I am looking for some advice. I have a fixed term mortgage in Germany on a German property for E185,000.
I have the option to wait for one more year at my current fixed rate of 5.10% and then renew, but obviously I don't know what rate would be offered at that stage.
alternatively I have the option to renew the mortgage now for the next 10 years at a fixed rate of 5.15%.

Should I wait till next year to fix it again or do you think I should take the offered 5.15% rate?
I do not incur any penalties or other charges for renewing it now.

All advice appreciated.
 
Wait...growth stats may slacken in the Euro Zone therefore rates in 12 months could be down from now. You may get 5.10% to 5.00% in 12 months but that's only supposition...but float for a while anyway & see what happens.
 
Hmmm, not so sure of this.
ECB rats might be lower in 12 months. If this turns out to be the case, this doesn't mean that the mortgage rate you're offered will be any less as the banks are increasing their margin over the ECB rate to cover perceived higher risk.

The 10 year fix sounds like a good offer. Have you asked them what they could offer you now for a 5 year fixed rate?

End of the day, if you're comfortable with your present rate (5.10) it's up to you whether you want to risk a potentially higher rate, or just go with what they're now offering you (practically the same at 5.15)
 
In hindsight Persius it's wishful thinking but a possibility (interst rates and forex rates are so hard to judge) so MaryKate take the rate if it is comfortable and self finances.:eek:
 
Thanks for your replies. I think I'll go with the rate offered now and lock it down for the next 10 years.
 
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