Half of Spaniards have not considered changing their mortgage because they find it a complicated procedure, is the conclusion drawn by the latest analysis by the Rastreator comparator. Five out of ten mortgaged they have not dared to move their mortgage loan to another entity despite the current facilities promoted by the Government of Spain that restrict the commissions that banks usually charge for these changes.
Specifically, in November 2022, Royal Decree-Law 19/2022 was approved to alleviate the rise in taxes. interest rates in mortgage loans on primary residences that eliminated the charging of commissions for variable rate mortgage holders who wanted to change their mortgage contract for one at a fixed or mixed rate, a measure that was extended until December 31.
Even once the date arrives, Law 5/2019 establishes that the surrogacy commission In the case of changing from a variable rate to a fixed or mixed rate, it cannot be greater than 0.05% of the amount that remains pending to be paid on the mortgage, even though this is not indicated in the deed. And, if the change occurs after the fourth year of the term, this commission cannot be charged.
Subrogating the mortgage still implies savings
Although a subrogation procedure may involve other expenses such as the appraisal of the home, these will be lower than those of formalizing a new mortgage, around 300 or 400 euros, according to the appraiser. While the saving that can be achieved is still very relevant.
Specifically, Sergio Carbajal, head of mortgages at Rastreator, assures that “it is still worth switching to a fixed or mixed mortgage.” The hiring of fixed mortgages have increased compared to the previous month in Rastreator, since they have gone from 81% of hiring to 89%, being the most hired. “The objective of the banking entities is to continue lowering the price of this type of loan – since in the same period of the previous year the average rate for this type of mortgage was 3.40% with the aim of attracting new customers”, they explain from the comparator.
To find out the new installments that mortgage holders may face, they can also use the Bank of Spain simulators that allow you to anticipate and organize the personal financeHowever, they can also request the new entity to offer personalized information necessary to compare the different offers that the mortgagee is evaluating, since the bank has the obligation to comply with the factor of transparency with clear and understandable information about the product being contracted.
Key steps in a surrogacy
The Bank of Spain establishes the deadlines that must be met in the signing of a subrogation. Firstly, the client must obtain a binding offer from the new bank detailing the conditions that it offers. Afterwards, you must contact the old entity to inform them and request that they certify the outstanding balance of the loan and the old bank has a period of 7 calendar days to deliver this certificate and 15 calendar days to offer the client a modification of the conditions. of the loan (a counteroffer), in the terms it deems appropriate, a period during which the transaction cannot be formalized. surrogacy. After this 15-day period has elapsed without the debtor having formalized the novation that modifies the loan with the old entity, the deed of subrogation may be granted.
Through this deed, explains the Bank of Spain, the new entity (subrogated) assumes the mortgage property and transfers to the old entity (creditor) the amount corresponding to the outstanding capital and accrued and unpaid interest and commissions.
With the procedure, the mortgagee can modify the rate of interest contracted, the term of the loan, or both.
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