How to halve the cost of your mortgage

How to halve the cost of your mortgage

For real estate owners who have financed the purchase of an apartment or a house over the past five to ten years, there is currently a unique opportunity. You sit in the credit contracts with interest rates of four to five percent, while currently between two and 2.5 per cent for ten-year-old construction loans are paid – that’s a difference of several hundred euros per month.

However, in many cases, it is now possible to withdraw from these expensive contracts. Because the banks often have sloppy and made mistakes, which allow the customer an immediate exit from the expensive loans.
In concrete terms, this concerns the revocation instructions, which are part of a credit agreement and are normally intended to enable the clients to withdraw from the contract within 14 days. As a result of some legislative changes, banks are in many cases different from the model texts, especially between 2012 and 2019, when formulating these revocation clauses – a mistake that now avenges.

Because these changes often made the clauses unclear and therefore unusable. For example, many texts do not clearly show when the 14-day withdrawal period begins. Numerous courts, including the Federal Court of Justice, have ruled that in such cases the withdrawal period has not started to run at all – with the consequence that customers can still withdraw today and thus withdraw from their expensive financing with immediate effect.

These are not individual cases. Consumer headquarters estimates that around 80 per cent of all building financing completed between November 2002 and June 2010 are affected. So the chances of getting out of expensive real estate financing and taking advantage of the currently low interest rates are not bad.

I got out of such an expensive contract myself. This has brought me to an idea: with the IG revocation, I create a community of interests that conveys your requests to specialised lawyers. The offer looks like :

– Within a few days you will receive a free initial assessment of whether your credit agreement contains an incorrect withdrawal clause.

– A similar check costs 70 Euro at the Consumer Centre Hamburg and currently has waiting times of several months.

Please note that only credit agreements that you have entered into as a private person (no traders, developers, etc) during the period from November 2012 to June 2019 are eligible. Use the opportunity to upload your credit agreement to the “free review” section of this Website. Or Fax the contract and if you Fax the contract, it is very important to remember, a cover sheet with your contact details incl. E-Mail as we will reply by e-mail after the examination.

Of course, we treat your data confidentially and not passed on to third parties.

If the first examination is positive, then you should definitely mandate a specialized lawyer. Although you can try it on your own. However, my experience shows that the banks are unlikely to react if they are only addressed by the customer in a friendly manner to the potential shortcomings in the credit agreements. The Michael Hugley also writes about this: probably your Bank will not let you just go. You must then turn on a lawyer.

If the examination of your contract is positive, in some cases there is even the possibility that a legal protection insurance bears the costs-even if you have not yet completed a policy .

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