Anyone who fears that interest rates will rise again, alternatively forward a so-called end loans. With such a modern financial products are already making the conditions for the subsequent follow-on financing agreed. Bank customers are secure against a future rise in interest rates from.
At the same time the customer but also for a long time, because a forward loan is not an option, not a contingency that you perceive, or simply can not perceive. On the contrary, the borrower agrees to acceptance of the loan. If it after one, two, three or four years to complete, it is threatened by even a claim by the bank.
The bottom line, the security interest, a forward loan offers, including its price: if the interest until the end of the previous loan to fall, would you forward without a more favorable credit loans can buy.
How the interest will develop, but nobody can predict with certainty. Most tap the experts that the medium-term interest rates will rise again, and possibly in the next few years, even a very substantial increase in danger. Justified such expectations especially with the policies of central banks and governments around the world, around the globe trillion pumped into the global economy to the financial and economic crisis to stop. Other hand, the example of Japan during the 1990s that an economic recovery can be painfully long duration and interest rates over a decade at an extremely low level can persist.
Against this uncertain background, any conclusion of a forward-loan at the same time a de facto interest rate speculation: Only if the interest rates will rise, would the conclusion of today's forward-loan to pay off.
Many readers of AM news Inmobiliaria, whose rate in the next few years will end, be such a speculation on political grounds. But you should make it clear that such an interest rate speculation ultimately can not escape. Even if you do not forward loan conclude, in fact, they speculate on stable or falling interest rates! For only with this expectation, it is useful to connect to today's funding is not preferable, but simply to rate the end to be seen.
A consumer's dilemma from which it is morally and politically, there no escape. What to do? "Every borrower who has his head is not easy in the sand, you should deal with the issue of Forward-loan deal," advises consumer protectors Arno Gottschalk, given the dilemmas.
Even with forward loans worth comparing several offers. The yield differences between individual banks are significant:
- The effective interest rates for a forward-ten-year loans with fixed interest rate subject to a survey by the consumer centers from 4.06 to 4.90 percent one year lead time;
- 4.19 to 5.05 percent for two years and forward
- 4.31 to 5.18 per cent, if the follow-on financing in three years. Yet, the seemingly small difference of interest, for example, 0.8 percentage points, you may ultimately price. It makes for a loan of 100,000 euros, more than ten years running, a difference of more than 8,000 euros.