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What is a mortgage seizure and how is it done?

Costs mortgage It is the most recurring cost for Spanish families. When you sign up, you sign off at the current interest rates. The biggest, the Euribor, which closed June at 0.852% compared to -0.484% a year earlier. It is the highest rise in history and has led to double mortgage payments. According to Asufinit is hoped that the variable mortgages more expensive about 1000 euros.

Therefore, the question arises as to whether it is expedient, where the contract allows, to change the mortgage to a fixed rate one, in which the fixed interest rates have reached an agreement between the bank or the entity. financial and the customer. . The truth is, according to experts, there is no categorical debate or suggestion in this regard. Everything will depend on the economic and personal context.

While it’s clear that in the current story, with the European Central Bank (ECB) announcing interest rate increases that will further help skyrocket variable mortgages, shielding interest is the best option, ranging from a variable to a fixed one. What do you need to do to convert a variable mortgage to a fixed mortgage?

What is the amount given to a mortgage?

Also known as a bank mortgage change, it is a mortgage operation that allows the conditions of the current mortgage loan to be improved by changing the creditor to better conditions. Generally, a bank that offers better conditions for the mortgage is found and the amount made is sent to that bank. That is, changing the debt from one bank to another. It will be profitable, therefore, when Euribor’s differentiation of that new mortgage is better.

What are the types of mortgage seizures?

  • Debtor’s offspring: change ownership through sale. For example, the future owner of the house being sold is interested in the seller’s mortgage. Therefore, the debt is subrogated.
  • Creditor offspring: it is what worries us. It involves changing the mortgage from one entity to another because the conditions have improved significantly. Or simply because you change the reference index from fixed to variable or from constant to variable.

How is a mortgage payment made?

This operation is started by going to the bank that has the best offer. This bank makes a binding offer to the prospective client which it gives to the other bank. If the current one where the mortgage is being contracted out is not improved, you can change banks.

Of course, this operation has to be exploited because these operations usually come at a cost: management, notary, registration … And the subrogation commission that the bank can apply. In one case average mortgage, about 120,000 euros, the total costs could be about 650 euros. While there are entities that take care of these costs.

So, mortgage subrogation is a way to improve the conditions with limited costs and we need to know how to get value to see if it is worth it or not. In addition, the bank will make sure in advance that you are a good payer and that you have not had any problems with the previous one. For example, you were not interested in arrears.

What are the best mortgages for replacement?

According to the financial platform Rankia, these are some of the best choices to cancel the mortgage:

  • Mortgage Extract at a variable rate Myinvestor: no commissions, no bonds, no mortgage costs. In addition, it has one of the best interest rates for a variable mortgage: Euribor + 0.89% from the second year.
  • mortgage subrogation Santander Bank: Customizable offering that promises to improve the current conditions.
  • Mortgage Extract ING: takes care of all costs.

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