Housing loans that now give Spanish banks are the cheapest in the history of our country: its average interest around 1.50%, according to the Bank of Spain. However, those who financed their property a few years ago did not have this luck, because the entities applied some types substantially higher than now (above 2% or 3%). Now, these clients do not have to be resigned to pay more, since they have the option to subrogate their mortgage (transfer it to another bank) to lower their interest and to reduce their fees.
But how much money can you save mortgages that change your entity loan? Logically, it is something that will depend on the current conditions of that credit and of which the Bank offers to which you want to move the mortgage. Therefore, from the financial comparator HelpmyCash.com they have a free simulator with which it is possible to calculate how much each client would be saved.
The operation of the mortgage subrogation calculator of this comparator is simple: the current interest of the loan must be introduced for moving, its outstanding balance, the date on which it was signed and the original return period. The simulator calculates how much media client could be saved with current market conditions and gives a figure both monthly and total.
For example, a client wants to know how much it would be saved by subrogating a mortgage with a slope of 150,000 euros, signed in July 2017, with an interest of 2.50% (the average fixed type of that time) and an original term of 30 years. According to the HelpmyCash simulator, this mortgaged would pay about 108 euros less per month in interest, which would yield a total average savings of more than 30,000 euros.
Of course, it is important to keep in mind that the savings will be greater the less time has elapsed since the signature of the original mortgage. And it is that, by the French amortization system (the one used in Spain to return the credits), most of the accrued interest is paid in the first third of the deadline, so it is convenient to carry out the subrogation as soon as possible.
Also, from this comparator they affirm that the expenses associated with the subrogation must be present, which will have to be submitted to savings. Most of the coasts for the formalization of the transfer must be paid by the new bank by law (notary, registration and managing), but the customer corresponds to pay the price of housing appraisal (about 300 euros) and that of the Copy of writing (a few dozens of euros).
It is also very likely that the mortgage transferred includes a commission for subrogation, which will have to be paid to the bank to which it is left. Its price, depending on the interest of the loan (fixed or variable) and the date on which the contract was signed, can oscillate between 0% and 2% on the pending amount at the time of change.
As a general rule, the savings obtained by subrogation compensates for the payment of these expenses, especially if the change is made in the first half of the mortgage period, but it is always advisable to make accounts to check it.
According to HelpmyCash, it is also important to know that not everyone can subrogate your mortgage. To begin with, it is essential to be solvent (have a good job, charge enough to pay the odds without problems ...), otherwise, otherwise, no bank will be offered to improve a loan from another entity.
Another requirement that must be fulfilled is that the pending amount of credit does not exceed 80% of the value of housing appraisal. And the reimbursement period, once the subrogation has been performed, it should not be more than 30 years old in most cases, although there are a few banks that allow the reimbursement period of 35 or even 40 years.
Finally, it is essential to take a minimum of between one and two years by paying the fees of the mortgage. And, as is logical, if the client has not paid some monthly payment on time, it will be very difficult to find a bank willing to subrogate his loan, since the entities will not want to run more risks of the account.
Date Of Update: 18 August 2021, 06:08
