The subrogation mortgage or mortgage bank change is a financial product that allows you to improve the conditions of your current mortgage by changing creditor. It is about changing the mortgage to another financial institution that offers us better conditions.
Subrogate does not always pay
The subrogation has expenses that the bank to which we want to subrogate does not always pay, so we must always consider this possibility and assess whether it is interesting to improve mortgage conditions at the expense of expenses.
In any case, it is a very good form of negotiation with our current financial entity, since we may match the conditions obtained in the subrogation process; In this case we could not change banks, but we would have managed to improve the original mortgage conditions. Futur Finances or its partner companies would only charge customer fees if we get a binding subrogation offer better than current conditions.
The first thing is to go to our own financial institution, with which we have the current mortgage loan, to try to negotiate an improvement of conditions; They are probably asking us to provide guarantors or double guarantees to study this possible improvement, which would result in a mortgage novation. If we are not successful, it is interesting to start the procedures to change the bank mortgage.
The mortgage subrogation of the creditor has a process
Established by law, which can be summarized as follows:
- We go to another financial institution that is interested in improving mortgage conditions. He will request all the necessary documentation to analyze the mortgage, as if he would grant it to us again.
- In case you approve the subrogation mortgage, we will present the new offer and we will have to accept it. It is clear that we have to improve the current conditions significantly, and better if you pay the subrogation expenses the bank (sometimes it does).
- Once we have accepted the bank change mortgage, a notarial communication process begins from the new bank to the old bank, communicating the intention to subrogate the mortgage loan and requiring the certification of the amount of the subrogation cancellation. Our current bank could decide to match the conditions offered by the new one, appearing before the notary within 15 days of the notification of the start of the subrogation process. In this case, we will not be able to change banks, even though we want to.
- Otherwise, the deed of subrogation of the mortgage loan will be signed before the notary, the new bank paying the outstanding debt and becoming our new creditor, with the improved conditions agreed at first.
If our economic situation allows us, let us be unfaithful to the bank. After all, if we are good clients, we have to be rewarded by improving our mortgage.