Unicaja Banco Offers Mortgage Novation: 5 Changes to Improve Mortgage Conditions and Expenses

The banking entity Unicaja Banco offers all its customers the possibility of making a mortgage novation. That is, make a series of changes to the mortgage conditions initially agreed upon in said loan.

In this sense, the majority of Bank entities They usually allow their clients these types of modifications. However, in many cases, the mortgage novation implies a series of expenses for users.

There are many people who have chosen a mortgage novation during the last year, due to increase in interest rates and the rise of the Euribor. The most common changes today are usually the change from a variable mortgage interest rate to a fixed rate interest rate.

CHANGES OFFERED BY UNICAJA

Unicaja professionals indicate that “the figure of mortgage novation allows you to modify some of the initial conditions of the loan as long as it is with the agreement of both parties (financial entity and loan debtor).

Thus, any modification The execution of the mortgage will have to be carried out through a public deed and registered in the property registry. This is what Unicaja reports.

With all this, these are the most common changes that a banking entity about him mortgage loan initially subscribed:

• Type of interest: It is possible to negotiate the change of the interest rate. That is, going from a variable-rate mortgage to a fixed-rate mortgage, or vice versa.
• Repayment period: At Unicaja, the user can also request an increase or reduction in the mortgage repayment period. This modification may also have effects on interest.
• Amortization or reduction of capital: If the owner requires it, he has the opportunity to increase or reduce the outstanding capital.
• Changes to personal guarantees: Modifications to these types of elements are also allowed.

Finally, there is also the possibility of subscribe modifications about the loan holder. In this regard, since Unicaja Bank They clarify that “this modification has a specific name, debtor subrogation, and may be necessary in the event of death, divorce or other circumstance that involves making a change in the name of the holder of the mortgage loan.”

MORTGAGE NOVATION EXPENSES

As we have previously commented, the mortgage novation may entail a series of expenses for the holder of the mortgage. The most common expense is usually mortgage novation commission.

The life of a mortgage loan is very long and at some point you may need to change its conditions. A solution may be a novation of the #mortgagebut do you know what it is?
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— Unicaja Banco (@UnicajaBanco) November 3, 2023

In this case, both Unicaja like any other banking entity You must inform the user of this possible commission and its amount at the time of signing the mortgage loan. However, in certain cases no type of commission is applied for the mortgage novation.

Typically, users perform a mortgage novation with the aim of improving their condition. This is the reason for this legal mechanism around mortgage loans.

Likewise, mortgage novation may also entail some additional expenses such as notary and registration expenses, appraisal and property tax. Documented Legal Acts.