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.