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- According to proptech experts, the currently low interest rates and the savings that it represents in the medium-long term for the client are the main reasons for the increase in subrogations.
Inevitably, the uncertainty generated by the pandemic has caused the real estate market to adapt to a new situation. For this reason, and to answer many of the unknowns that surround the
homeowners; from Housell they have developed a series of tips on mortgage subrogation.
What is mortgage subrogation?
It is an increasingly used tactic, whose main purpose is to modify some of the key points that are agreed upon when a mortgage is signed. The popularity of mortgage subrogation continues to grow thanks to very low interest rates. A situation that greatly benefits mortgage holders.
There are two types of surrogacy:
- Subrogation to debtor: It is the one that is carried out when you want to change the owner of the mortgage. Among the cases that opt for this type of procedure would include all those owners who make the purchase of previously mortgaged properties.
- Creditor subrogation or between entities: is the procedure that allows you to change the mortgage from one bank to another. In this way, their cancellation would be avoided and competition between banks would be encouraged.
Obtaining a lower interest rate or cheaper prices, among the main reasons for opting for mortgage subrogation
The main reason why homeowners request subrogation is because they seek to obtain a mortgage with a lower interest rate than they already have; as well as with fewer links. In short, the management expenses are worth it as they are quickly amortized.
As if this were not reason enough, those who opt for this process consider that it will end up assuming a final saving in different expenses, such as those that come from the agency, the notary or the registry.
“Mortgage subrogation is an option that is increasingly demanded by Spaniards”, Says Guillermo Llibre, CEO of the company. “Helping future owners and making the purchase of a home an increasingly accessible option for the entire population will always be one of Housell’s priorities..”
