Comparing a 3.12% two-year mortgage quote in Berlin

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First-time buyer
I want a mortgage that remains sensible if I refinance after two years, but the fees and flexibility make the cheapest-looking rate difficult to identify. The purchase under consideration in Berlin is around €717,600, and one offer fixes the rate at 3.12% for 2 years.

I am inclined to compare the cash paid over that same period plus the balance left at the end, rather than rely on APR alone. Is that too narrow? An expensive arrangement charge comes with stronger overpayment options on one quote, so its value depends on whether I will actually repay extra. Portability, early-repayment costs and the assumptions used for refinancing could matter more than a small rate difference. How would you put those features into one comparison without pretending their future value is certain?
 
For a two-year fix, I’d compare every quote over the same two years: required monthly payments, all upfront or financed fees, interest paid, and the remaining balance at the end. APR is useful, but its assumptions may not match what happens when the rate resets so soon. I’d also run the comparison both with and without the overpayments you realistically expect to make.
 
What loan amount and LTV tier are the quotes based on? The €717,600 purchase price alone is not enough to compare them, because different deposits could change both the rate and the monthly affordability. Also ask each lender for figures using the identical loan amount, repayment schedule and fee treatment—especially whether the arrangement fee is paid in cash or added to the borrowing.
 
I wouldn’t give portability much weight unless moving during the fixed period is a realistic possibility. Even then, the wording and eligibility at the time may matter more than the label.

The larger issue is rate-reset risk after only two years. Compare the balance you would need to refinance, then test whether the payment remains comfortable under several higher-rate assumptions. A cheap initial deal can be poor value if the fee is large and you have to pay another fee soon afterward.
 
One caveat to my own point: the quote with the higher fee could still win if its overpayment terms let you reduce the balance substantially without extra cost. But that only matters if you have a credible source of surplus cash. I’d avoid assigning a monetary value to flexibility that you probably won’t use.
 
That helps. I was concentrating too much on the advertised rate and not enough on the balance remaining after two years. I’ll ask both lenders for matching illustrations based on the same loan amount, LTV, repayment pattern and fee treatment. Then I’ll compare total cash paid plus the remaining balance, with a separate scenario for realistic overpayments and higher refinancing rates. Portability will stay a secondary factor unless the terms are genuinely usable.
 
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