It is very appropriate that we keep a tight check on these data, to know at any time if our situation allows us to meet these debts.

Reports and to request a payment plan

The first thing we do is a list of all loans that we have, other periodic debts and insurance payments will be addressed (taxes, incidentals, etc..) Some of these debts relate to loans for which we paid interest and others do not.

Debt interest

For example, among the debts with interest are: mortgage, car loan, personal loan (for any expenses) and credit card.
Interest-free debts

Debts without interest but we have to pay monthly or other intervals, but we can plan because we know that exist, include: income tax, vehicle tax, tax on the rateable value, shares of the residents, vehicle insurance, home insurance and personal, car reviews (ITV, maintenance …) and so on.

Contingencies

And there will be another section of contingency, we can take into account, and which, although it is uncertain, we can sense in our experience. This is wise not to fall short in forecasting and to provide a sufficient contingency expense (if less then, that money already spent on other things.)

Once known the debts to be paid, we will ask financial institutions to report on loans: initial capital, capital outstanding, shares outstanding, the amount and frequency of installments and interest we are paying. These reports must be ordered with some frequency.

The report earlier this year may not be reliable for the future, as there may be variations for new purchases, new loans or payments had not expected or remembered. No interest payments are also known, at least its approximate value. Contingency we will endow a sufficient amount (eg, slightly larger than last year).

Knowing in advance how we can we know the amount for payment each month. Obviously, if our financial situation worsens, we must see if we can continue to meet these payments, or should be prioritized (see the article Which of my debts paid first). Remember that paying all my debts will have a high level of solvency, which is always recommended for needs that may require funding.

Another utility of the table is to see if there is a dispensable expenditure or that we can reduce or negotiating interest rates or looking for a supplier that we lower the bill.

In short, we must know exactly where we spend the money and what debts we have to plan all our payments and avoid unwanted surprises.

The committees are established by each institution, in consultation with the Bank of Spain to ensure that meet certain requirements and comply with the law.

Must be necessary, ie to respond to a service and not covered by another product contracted by the client, must be communicated to customers and posted on the bulletin boards of offices, are not abusive (on this should be discussed much) can not be charged for transactions carried out by failure or negligence of the entity can not be cashed in if there are no contracts and can not exceed a fixed amounts (eg 1% cancellation rate mortgages variable).

Bank charges are applied more

The commissions that normally apply are: for transferring money, to keep accounts, to withdraw money from cash, to have cards, study and / or create a credit, cancel, for having an overdraft.

Actually, it is difficult to escape them. The only thing we can do is compare the different entities and seek the lowest commission, because although in theory the commissions should have the degree of marketability, consumers often do not find ourselves in a strong position against the entity.

If you need a loan and the Bank X gives to you, surely you can not get to demand that you remove this or that committee. In Spain it seems that bank customers tend to be quite tolerant and slightly combative when accepting payments imposed on us. In another article we will discuss how we can be more effective when negotiating some bank fees.

Average annual expenditure of a person in bank charges

A study by Consumer magazine, the annual expense of a person in commissions can vary between 40 and 210 euros, as in a normal situation is to have a checking account, credit card, a debit card, make an average of six transfers, and any income checks.

Moreover, as a credit request must checkout and pay the relevant fees and opening study … and not think of anything in advance of the debt, because then the commission will also pay partial or full prepayment (see article on repayments mortgage). And if we find a bank that will lend us money for something cheaper, take the mortgage will lead us there subrogation pay the relevant commission.

Entities that do not charge bank fees

Lately we see in many media entities ads say they do not charge commissions. We appreciate the effort, but not we say that in reality, all this has buts and small print.

There are a number of committees (such as keeping accounts) are not charged to creditworthy customers or shareholders, but others continue to claim (as the opening of mortgages).

Other entities determine the not charge you a broad range of commissions to you customer loyalty with them (payroll, insurance, mortgages, accounts, cards, pension plan …). So far recovered that lose revenues.

If we said at the outset that the commissions as a whole are the main source of profit of entities clearly we will never eliminate them entirely. Only eliminate the commissions financial (maintenance of accounts, transfers to an amount, issuance and renewal of cards.) Is business. And no business sacrificing your goose that lays the golden eggs. At best, let in 50 golden eggs make a normal.

In recent years, the housing market in Spain has enjoyed spectacular growth, both in terms of houses built and from the sales data from new and existing homes. This large increase was reflected in a large increase in the number of mortgage loans requested and granted. Credit institutions have seen and their profit rates reflected significant growth.

But with the slowdown in sales due to economic uncertainty, the high housing prices and the oversupply of housing, there has also been a decline in the number of mortgage applications.

Banking institutions in order to meet their objectives in terms of volume of loans, are forced to adopt new strategies to attract customers in a market are not as abundant. How? For taking away customers to the competition. If there are no new customers, he will have to convince those already in the mortgage market for transferring their mortgage to our organization: it is what is called subrogation of mortgage.

This war between the entities to grab customers, can be beneficial to the consumer, because the organization must offer more favorable conditions for new mortgages which they had before. On the one hand, some banks offer commission-free mortgages (cancellation, subrogation, etc..).

More advantageous interest including financial compensation that may be a percentage of total mortgage (1% – 2%) or a fixed amount (about 600 €). They also tend to offer the possibility of extending the repayment periods up to 35 or 40 years so that the monthly fees are lower.

Of course, that such generosity on the part of banks as payment on our affiliation must have their services counterparts. Nearly all organizations want to move on to become loyal customers and our products contracted relationship is not limited to the mortgage.

Therefore, the recruitment of mortgage credit will influence the recruitment often simultaneous life and home insurance partners, to the address of our payroll, to the address of a certain number of receipts, etc..

When I agree then take the step to change my mortgage entity?

Clearly, as we always recommend, the main thing is to study carefully the multiple offers, come to inform many entities or the Internet. Then necessary to assess the options and decide according to several criteria:

1. first, to assess the total savings are going to get over the life of the mortgage (as long as we maintain a period not greater than before.)

2. also assess whether but not total cost savings, we can get more time to go back every month better off (if you do not have this problem, should we not extend the repayment period, because they end up paying significantly more.)

3. weigh the cons, such as subrogation and cancellation fees, notary fees of the new mortgage, or insurance already paid to the other entity that will be lost.

In brief

We can say that it is possible to save much money if we can find an attractive offer and we negotiate well, never forgetting that in this type of business entity in exchange for mortgages, are the ones that are very interested in us as customers .

That force must know how to use it to get better conditions for our mortgage lending and reduce our expenses and future.

Negotiating an option that could be interesting would be submit to the director of our company a concrete offer and agreed with another entity better than we have now, for us to improve the conditions if you want to continue having us as customers.