Sunday, 1 March 2015

Sparda Bank Nightmare

Yesterday we had a bit of a setback.  For our plan A with the mortgage to work we need Sparda Bank to allow us to buy out of our existing mortgage on the flat so we can refinance it with the house together.  A couple of weeks ago I contacted Sparda Bank to request info on how much it would cost to buy out of the mortgage (we estimated about €17,000 "Vorfälligkeitsentschädigung") and for them to send a confirmation that this is ok.

A letter from Sparda Bank arrived yesterday basically saying they won't allow us to buy out of the existing contract and that they have no grounds to allow this so we simply have to keep paying it.  I would understand it if they would lose money but the fact we would have to pay the entire lost interest for the next 3 years until the contract runs out anyway means they have nothing to lose.  Quite unacceptable, inflexible and totally non-customer friendly service from Sparda Bank.

For us it means that we now have to switch to plan B where we continue paying that mortgage alongside the new on for 3 years but now we have to arrange get a 2nd advanced mortgage that will kick in in 2018 when the Sparda Bank mortgage contract expires, which will then (hopefully) mean they release our Bausparvertrag funds this year.  We need this as capital for the new mortgage on the house so it's a vital step that we get access this money and hopefully Sparda Bank won't completely mess this up for us.

This plan B will unfortunately cost us an extra €15,000 so although I've banked with Sparda Bank for over 10 years I will be closing my account, Steffi will close hers and I would strongly advise avoiding this inflexible, non customer focussed organisation to anyone considering banking with them.

Moan over.

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