Interest rates on variable rate mortgages are increasing: we are talking about 45 euros more. How to protect yourself from these increases?
The mortgage payment increases and it is necessary to take action in view of the numerous increases that Italian families are undergoing: this is specifically how to fight the rises in interest rates.
The monthly increase depends on the time that has passed since the mortgage was taken out and the amount that remains to be repaid to the bank: to undergo the minor increases will be the people who are about to pay off the mortgage which is calculated on the residual debt. A solution for those who still have several installments to pay could be to switch to a fixed-rate mortgage, so as not to suffer the increase in the coming months.
Mortgage subrogation: how to switch from a variable rate to a fixed rate
The choice of fixed rate it also depends on the purchase needs: most mortgages concern the purchase of the first home and therefore it is not an investment. Consequently, the fixed rate is a guarantee of consistency over time. The change from floating rate to fixed rate would temporarily increase the rate but would provide protection in the years to come from any possible fluctuation. The costs of any subrogation are borne by the new bank with which the new contract is signed and it is possible to change the duration of the amortization plan.
To ask for the subrogation of one’s own mortgage and proceed with the transfer to another bank it will be necessary to present some precise documents. What are the documents to show?
- a copy of the mortgage registration note;
- a certified copy of the documentation relating to the loan with the old bank;
- a photocopy of the identity document of any guarantor;
- the certificate of marital status;
- income and cadastral documents of the property.
Attention must be paid to the moment in which it is decided to carry out the subrogation: the transfer, in fact, is more convenient in the first years of amortization of the loanwhen interest expense is higher. If you are the holder of a mortgage that is about to expire, however, the installment is almost entirely of the principal amount: there will be no large fluctuations with respect to the amount to be repaid, even if the rates were to increase.
In fact, therefore, the subrogation of the loan should always be carried out during the first years because it is more convenient: switching from a variable rate to a fixed rate can be a valid solution to counteract the increases that will occur over time.
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