Business and Finance Analysis

Posts Tagged ‘Mortgage Bank’

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.

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