When we talk about mortgage subrogation, one of the options we have is to change the bank mortgage.
If you want to improve your quality of life at an economic level this is an option that you should not rule out. In addition, the new Mortgage Law now makes mortgage subrogations much easier.
As a borrower, it is easier for you to take your mortgage to another bank to enjoy more favorable conditions and without facing large expenses.
The first is the negotiation
The mortgage takes a good portion of your monthly income and will do so for a few years. Precisely for that reason, it is essential that you know your loan and its conditions thoroughly.
Once you have done this review you can go round by different banks to ask what conditions they can offer if you take your mortgage.
Unless you have a mortgage loan with very good conditions, it is normal for another bank to make a better offer. You have already taken the first step to save!
Ask the bank in which you have asked me to give you a binding subrogation offer and take it to your current bank to see if they can improve the offer.
As you can see, with a very simple negotiation you can achieve a significant saving.
Advantages of subrogating my mortgage
Changing the bank mortgage today is very simple, so it is an option that you should not lose sight of if you want to improve your finances. Here are some of the advantages that you will get:
- You reduce interest on outstanding debt.
- Change the benchmark of a more unknown one such as GFIC to USD.
- Finish at a stroke with the ground clause and other abusive clauses that may be in the original loan.
- It is an operation that is performed quickly. Banks take care of everything and you just have to go to the notary to sign.
- Tax on Documented Legal Acts is no longer paid.
- There is no payment of Property Transfer Tax or VAT.
- Even if you change banks, you can start a claim against your previous bank if there were abusive clauses in your mortgage.
- You can improve conditions beyond the type of interest. For example, reducing the number of links with the bank.
Does changing the bank mortgage also allow me to change the interest rate from variable to fixed?
We commented at the beginning that the mortgage loan gives rise to a very long-term relationship with the bank. The good thing is that thanks to figures such as mortgage subrogation we can make changes in what we negotiate at the time. We are not required to live with these conditions until the debt is exhausted.
Rivers of fixed-rate and mortgages at a variable rate have written rivers of ink. In reality, we cannot say for sure that some are better than others, it depends a lot on the economic situation of each moment.
For example, now that interest rates are low, a variable mortgage is more convenient. On the contrary, if they start to rise, it may be interesting to opt for a fixed rate.
It is possible that at the time you signed a fixed rate or variable rate mortgage and over time you have regretted it. Don’t worry! Can you make a change.
The time to change a bank mortgage is the perfect time to move from one type to another. In addition, with the new legislation, you get cheaper.
If you go from a fixed rate to a fixed rate during the first three years of the credit you pay a 0.15% commission, after that time you will not have to pay anything. And the good thing is that this measure is retroactive, so even if your mortgage is signed before the new Mortgage Law comes into effect, you can benefit from this.
Do you dare with the change?
If you are thinking of subrogating your mortgage to another entity, the first thing we recommend is that you inform yourself well and go to an expert advisor in the mortgage market and the offers of the different entities.
Only in this way can you access the one that suits you best knowing that the change will be beneficial for you.
Finally, there is a Mortgage Law that, before protecting the banks, protects you, take advantage of it and do not miss the opportunity to change your mortgage because of fear or laziness, find out and know your options to have a good judgment and to decide if You are really interested in completing the procedure. You can save a lot!