How Subrogating Your Mortgage Helps Reduce Payments Amid Euribor Increases

Since the Euribor began to rise in the summer of 2022, those who at the time opted for apply for a mortgage variable have seen their fees increase, on average, by €300 per month. To alleviate the effects of these situations, today we tell you How does it help to subrogate the mortgage if the fee has increased by the Euribor.

What does it mean to subrogate a mortgage, who can do it and what are the costs?

Along with the novation, the subrogation of a mortgage is one of the ways you have improve your mortgage. It simply consists of transferring your mortgage to another bank that offers you better conditions. Is used for change the interest ratechange the return period or eliminate unfair commissions and clauses.

Los requirements to subrogate your mortgage son:

• Have a current mortgage with your bank.
• Take between a year and three paying correctly the monthly payments.
• That the capital pending amortization do not exceed 80%.
• Have stability labor and financial

Lastly, regarding the cost of subrogating a mortgageyou will have to face:

• Expenses of would notary. Between 0.2% and 0.5% of the capital pending amortization.
• fees of the agency. They can range from €200 to €500.
• record of the Property. The cost is around €100.

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How does substituting a mortgage help to reduce my payments if they have increased?

You can probably tell yourself now How does it help to subrogate the mortgage if the fee has increased by the Euribor. The objective of subrogation is to improve your mortgage, so it is logical that the result is more favorable installments.

Specifically, the appropriate operation with a variable mortgage affected by the rise in the Euribor is the switch to fixed rate interest. Although rates have also been affected indirectly, their increase has not been as large as that of variable rate rates.

In April, for example, according to INE data, the average interest on mortgages that were changed to the fixed rate decreased by 0.3 points. Therefore, changing your variable mortgage to another bank, if it is to switch to a more favorable fixed interest rate than the one offered by your entity, proves to be an effective measure to reduce the pressure on your monthly payments.

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What steps should I follow to subrogate my mortgage if my installments have increased?

Los steps to subrogate your mortgage they are not complicated. We detail them:

1. Compare maximum offers. To do this, use our mortgage comparator.
2. Inform your bank. He will probably make you a counter offer that you should consider.
3. make your choice. After a lot of looking and talking with different banks, it’s time to choose.
4. Formalize the surrogacy. You must do it before a notary.

The entire surrogacy process will go much better with the help of mortgage brokers of Housfy Mortgages. After studying your case, they will recommend the ideal way for you to improve your mortgage. They will negotiate directly with the banks, and you yourself will choose the option that best suits you among the several that they offer you. It’s that simple!