How to get a cheaper mortgage in 2022

Today if you want to own a home you have no choice but to go through the bank to subscribe a mortgage. However, there are many people who refuse to pass through this ring, since they relate the concept of mortgage with that of life imprisonment.

However, for you to check that that does not have to be so, in this post we will give you the key so that you can change mortgage when you consider it necessary and improve your conditions. Join us and we will tell you everything!

Improving your mortgage is possible

That’s right, in case you didn’t know it is possible to save up to 50% on your mortgage payment by simply switching entities. You can reduce your monthly payments with a lower interest rate or change from variable to fixed mortgage, through subrogation.

Currently there are secure and reliable portals that allow you to compare mortgages, so you can find the one that best suits your situation, scanning the mortgage market and presenting mortgage loans adjusted to your economic and personal circumstances in a clear, impartial and totally transparent way.

This way. you will be able to find out what their clauses are and even perform a simulation, long before you have to sign any contract.

And without further ado we are going to show you everything you could achieve through a surrogacy.

Why is surrogacy such a good idea?

First of all we will explain that the subrogation is a modification in the conditions of the mortgage that were contracted in the beginning.

Needless to say, the subrogation of the mortgage is the most recommended resource if the conditions of your mortgage, which a few years ago seemed good, have lost their original splendor.

• As we have indicated in previous paragraphs, it could be convenient if you have a variable mortgage and want to move it to fixed.
• Likewise, it is your best option if you want to buy or sell a house that still has pending liquidation the mortgage that weighs on it.
• Likewise, it is an ideal system for renegotiation since the conditions are revised in the new bank from those you had in the other bank.
• On the other hand, it gives you the opportunity to get an improvement in interest and eliminate links from the mortgage to insurance or other similar products.
• Finally, you will not have to pay the IAJD (Tax of Documented Legal Acts), nor opening commission since there is no cancellation.

As you can see, there are many benefits you get with surrogacy, but let’s see below how many types there are.

Surrogacy classes

There are mainly two variants:

1. Subrogation of debtor which consists of changing the holder of the mortgage. It is mostly used when buying a home that still has a mortgage. In addition to changing the ownership of the home, the mortgage loan is also transferred.
2. Creditor subrogation that occurs when the mortgage holder decides to change the bank to modify it in order to obtain an improvement of the conditions in the loan. With this option we can eliminate products linked to the mortgage, move from variable to fixed interest rate, shorten or extend the repayment period or lower interest.

As for the costs involved

As any banking operation has associated a series of expenses, although you should know that it is in the entity that is where you process it, they will always be the same, around 650 euros approximately and distributed as follows:

1. Note: 30 € for copies of the client’s deed.

2. Management: Between 100 € and 300 €.

3. Registration in the Land Registry. The cost may vary depending on the price of the house.

4. Surrogacy commission:

• Fixed rate mortgages: 0.5 % the first five years and 0.25 % the remaining time.
• Variable rate mortgages: 0.25 % the first three years, 0.15 % until the fifth year and the rest of the years without commission.

5. Opening commission: Normally not applicable, although the entity may reserve the right to do so.

To finish, from here we recommend that before to make the leap to another entity try to renegotiate the existing conditions. What you didn’t achieve a few years ago now, maybe they’ll give you.

But if you don’t get it, remember that surrogacy is an excellent alternative. Of course, do not forget to study the conditions offered by each bank and make accounts to find out which option you are most interested in. We must not lose sight of the fact that the savings of changing banks must always be greater than the expenses associated with subrogation.

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