Change bank mortgage

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When you have a mortgage loan on behalf of any bank, at any time you need it you can try to make a renegotiation reach more favorable conditions with the entity, through a procedure called modifying the novation.

In addition, through another procedure you can choose for take your home loan to another bank which you prefer, this procedure is called surrogacyThis can be done when the other bank offers you better interest and / or loan conditions than the current bank where your mortgage is. Despite that, the original bank You can avoid surrogacy if you are match or offer better with that of the second entity in which you want to apply the change; is named enervate surrogacy.

At the beginning of the procedure mortgage change The bank has a period of 15 days to enervate, from the notarial notification, having to appear before a notary stating its intention, in which it must endorse in ten business days delivering to the presumed debtor through a writing of a Binding offer in which the equalization or improvement of the mortgage conditions is expressed.

Then, for the effects of surrogacy it will be enough that the new bank pay the former the outstanding amount of the loan, as well as all the accrued interest and also the required commissions, as well as formalize the subrogation through a public deed before a notary public.

It is necessary to pay attention that, in both processes, novation and subrogation They have a cost, which is usually higher in surrogacy. These costs may involve notary and registration fees, some bank or tax fees, and are limited by law.

Everything previously explained is approximately the procedure of change of bank mortgage, along with some terminology you may need to help you through the procedure. The mortgage swap between banks It can be time consuming and costly, however it has many advantages that may seem beneficial to you. improve your mortgage contract, and save the most money, in the short and medium term.

The main target de cambiar de banco is to obtain a contract that has better conditions, and thus pay a lower total amount for the mortgage, but for this we must look for a bank that offers us a best binding offer. So, before making the decision to change banks, it is essential to make a good bank search and conditions Within these. For this, online mortgage purchase sites such as HelpMyCash.com can be used since it makes it possible to search for information on all mortgages quickly and without leaving home.

Before going into other details about the mortgage change It is also essential to review what the advantages are and when it is convenient for us to make a change of bank.

Advantages of changing the bank mortgage

Modify interests:

Algunas de las principales razones por las que las persons deciden realizar la bank mortgage change procedure it is the fact of being able to modify the interest rate, which represents a considerable saving, by allowing modifications both in the difference, in the benchmark indices, and in the bank's interest rate.

A help to negotiate:

Another way to use the mortgage subrogation es como una técnica para negociar mejores condiciones, usando como amenaza la intención de cambiar la hipoteca a otro banco con mejores condiciones. Ante la viable pérdida de un client, el banco puede querer igualar las condiciones de otro banco prestamista, no obstante, se debe prestar atención que el banco puede no ceder para dar mejores condiciones, y este procedimiento implica una serie de considerables gastos, hace falta tener muy claro las condiciones a negociar, al mismo tiempo de tener claras las posibles consecuencias. Y en el caso de que parezca que no es conveniente es mejor usar algún otro tipo de procedimiento.

Eliminate abusive clauses:

When changing one bank mortgage You have the possibility of removing abusive clauses that you do not benefit from, such as the well-known floor clause, or excessively high interest, such as default interest. This is one of the alternatives that benefits clients who demand the withdrawal of the floor clause, but their bank did not give in and refused to carry out a mortgage novation.

Extend the term:

Toward change a bank mortgage You will have the possibility of increasing the term of the loan, up to the maximum allowed by the new entity. And in that way lower the monthly amount of your rate.

It is important to highlight changing the bank mortgage

If you pretend subrogate your bank's mortgage You have to pay attention that this will involve some expenses, starting with the commission for the subrogation, that in this subrogation you can only change the interest rate, and the term, or a combination of both. If what you have in mind is to change more things, this would no longer be a subrogation, but a novation or cancellation por una nueva formalización hacia algo considerablemente más caro; Entonces hay que concentrarse en estos cambios que se pueden hacer, y dejar de lado lo que está fuera del scope de la gestación subrogada, como la expansión de la capital, que está mucho más allá de esto.

In case of reaching an agreement in which the conditions improve considerably at the new bank For those who are planning to change their mortgage, the subrogation process will cost around 150 euros approximately. It was previously free, but now it has changed.

You have to pay attention that, propose a change of mortgage, If you paid for the five-year insurance with a funded premium, the bank will not return the unearned premium for the remainder of the life of the insurance.

At the same time of what mortgage exchange risk, and taking into account everything essential to carry it out, this procedure is left to the decision of each one. If you get a good agreement with another bank and the improvement of the conditions you have in your current bank, and this means savings in the short and medium term for you, the change of bank mortgage can be absolutely worth it.

Steps to change the bank mortgage

Look for alternatives:

If the monthly installments of the first three years of the mortgage have been paid without problems, they will be in a position to apply a subrogation of our mortgage loan and change it to another bank. Therefore, the first step to take is to look for banks that offer better deals and compare them to see if they improve our current conditions, and that they accept us as clients. A method for quick and easy mortgage search, is to use a free online mortgage buying platform, such as HelpMyCash.com

Wait for the binding offer:

Having already selected the new bank that we want subrogate our mortgage, we must submit a surrogacy request. If the bank accepts this request, it has a period of 7 days to be able to present an offer that includes the new conditions to be discussed.
When this offer reaches us, we will have a period of 10 days to choose whether these new conditions interest us or they have not convinced us.

Wait for the counter offer from our bank:

At this point in the procedure, our bank already knows that we have planned the change the mortgage to another bank, so it is time for him to weaken the subrogation and present us with a novation offer to prevent us from switching banks. If the novation offer offered by our current bank is better than or equals the conditions of the new bank, our subrogation procedure will be paralyzed and we will not be able to change the bank mortgage. But if the bank does not present a better offer, the subrogation will continue and the bank mortgage will be changed.

In fact, the procedure is much easier than it seems, as soon as you find another entity that makes you a better offer that improves your current conditions on your bank's mortgage, calculate how much the cost of the procedure will be, and compare it with the savings that you will receive in the short, medium and long term, you will quickly be able to realize if it is convenient to make the change of mortgage to another bank. Therefore you can be sure that this procedure is viable and depending on your case, it can save you a lot of money; therefore do not be afraid to negotiate and look for better conditions for your mortgage.