In an environment in which the Euribor seems to have definitively changed its trend and is heading towards positive values, many families are considering seeking peace of mind by converting their Variable Mortgage-
There are three options-
The most profitable and recommended option since it incurs fewer costs is the novation which consists of changing the conditions of the mortgage with the current bank. In this case the commission is 0.15% for the first three years of the mortgage. When this period ends, the commission disappears.
The subrogation consists of “taking the mortgage to another bank” and the commission is the same as that of the novation: 0.15% during the first three years. On the other hand, a cost must be included for the Appraisal-
Finally, the option that is usually less recommended is the cancellation of the mortgage and the opening of a new one, in this case, in addition to the extra paperwork, we have to pay the cancellation of the mortgage that reaches up to 1% plus taxes and commissions. the new mortgage.
Let us remember that it is usually more profitable to improve the conditions during the first years of the mortgage because that is when mainly interest is paid and less the amortized capital.
Finally, if you are interested in taking this step, you better hurry up since the banks are gradually tightening the conditions of fixed mortgages. At the moment, many banks have followed this trend, such as Bankinter, BBVA or Banco Santander, although there are some laggards such as CaixaBank that have not yet changed their offer, probably because they have not yet had time.
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