/cloudfront-eu-central-1.images.arcpublishing.com/larazon/OG7B5X6GVZHM5DL6ELW2HFBS64.JPG "Is this the best time to change your bank mortgage?")
Mortgage loans are present in much of our lives, however the initial conditions signed with the bank may not be final and may vary. Therefore, for some clients it may be very interesting to change the mortgage to another financial entity that offers more attractive conditions than those they currently have.
This procedure is called mortgage subrogation and it is a modification of the initial conditions in which said mortgage was signed, so the mortgage is changed from one bank to another in which the interest rate, the combined products linked to the loan, as well as the commissions can be negotiated. Thanks to the new mortgage law, this process is much simpler than before and most of the expenses are borne by the bank.
The key when making a mortgage subrogation is in compare the market offers to find the mortgage that best suits your needs of each consumer and know what the conditions offered are.
These are the advantages of subrogating the mortgage
The process of mortgage subrogation from one bank to another can also generate changes in conditions, that is, every financial entity works under different conditionsso the interested person can find a bank that is more attractive to him.
Between the Main benefits that can be obtained by subrogating a mortgage include the following:
- Change the interest paid on the loan.
- Change the repayment terms.
- improve conditions regarding aspects such as commissions and relationships.
Is there a perfect time to subrogate a mortgage?
In addition to the advantages that can be obtained, is there an “ideal” time to subrogate a mortgage? Really anyone is good to make this changesince if after comparing mortgages, we decide to continue with the subrogation, this will mean that the interested party has found a mortgage that offers better conditions.
However, it could be said that Currently, we are in one of the best times to subrogate a mortgage, given that the Euribor (reference interest rate at which interest is paid on variable mortgages in Spain) is in negative territoryremaining close to its historical lows.
So, With the lowest Euribor, people pay less interest on the money that financial institutions lend to finance housing. Although this situation directly benefits borrowers with a variable mortgage, those who have a fixed one will also be able to obtain advantages when it comes to subrogation.
This is due to the fact that fixed mortgages condition the mortgage market as a whole, despite the fact that they do not interest varies according to the fluctuation of the Euribor. In this sense, to be more competitive against variable mortgages, fixed mortgages also have to be positioned with interest rates low. That is why we find ourselves with a mortgage market that offers very attractive mortgage products, which makes mortgage subrogation a good idea now.
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