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What is a mortgage seizure and how does it work?

It is euribor will pass positive numbers in April after about six years zero alert put all those who signed up variable rate mortgage. The reasons for the increase in the 12 – month reference index are the most commonly used in Spain to calculate the mortgage payments Is the energy crisis y economic derived from the war in Ukraine. The IS inflation It also plays an important role. Experts predict that it will continue to rise and therefore the share of variable mortgages will continue to rise.

People with a mortgage behind them have the option of modifying the terms of the loan with the same bank or, alternatively, activating it. creditor’s subject matter ó mortgage. What’s in it?

Change mortgage terms

Activate the mortgage subrogation it means taking the mortgage to another banco. In this way, the client can modify the type of loan (from variable rate to fixed rate, and vice versa), the applicable interest and his ré, as well as other additional conditions, such as property insurance.

Experts warn that the related costs Mortgage evasion is usually higher than the conditions for modifying the conditions with the same bank, but lower than the conditions for forming a new mortgage.

Steps to follow to get subrogation

So anyone interested in doing a subrogation can go to a new entity and apply Binding motion. The borrowing bank contacts the former entity, which has a period of seven calendar days to certify the entity Outstanding balance of the mortgage.

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In addition, the first bank has 15 calendar days to offer the client a modification of the loan conditions to try not to lose it. During this period, the application cannot be formalized.

Upon expiry of the deferral period, the debtor receives the deed of evasion, by which the new entity assumes ownership of the mortgage. Similarly, it will transfer to the original bank the amount corresponding to the pending capital, as well as the accrued and unpaid interest and commissions.

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