“The interest rate can be modified”

Almost half of Spanish consumers have problems keeping their domestic economy healthy. According to the National Institute of Statistics (INE)in 2024, up to 9.1% of the population had difficulty making ends meet, while 35.8% could not face unforeseen expenses.

Because the inflationalthough it remains at relatively low levels, continues to rise every month, thus causing an increase in the cost of most of the goods and services that we consume and raising the pressure on our personal finances.

This situation is especially delicate for citizens who must face periodic payments such as mortgage paymentswhich are mandatory every month if you do not want to risk losing your home. However, there is a way to improve the conditions of your mortgage, even without having to negotiate with your bank if you see that it is not a feasible option: mortgage subrogation.

“If you want to improve the conditions of your mortgage and you cannot do so by negotiating with your bank, you can change it to another entity. This process is called creditor subrogation“, specifies in its banking customer portal the Bank of Spain (BE), which explains that “the applicable interest rate, the term of the loan, or both can be modified,” and that the process begins when the new bank “makes us an binding offer detailing the conditions it offers”.

If we accept, “you will then contact the old entity to inform them and request that they certify the outstanding balance of the loan.” So, “the old entity has a term of seven days natural to deliver this certificate and fifteen days natural resources to offer the client a modification of the conditions of the loan, in the terms it deems appropriate, a period during which the subrogation cannot be formalized”.

The banking regulator indicates that “after the period of fifteen days without the debtor having formalized the modifying novation of the loan with the old entity, the deed of subrogation may be granted.” “By this writing the new entity (subrogated) assumes ownership of the mortgage and transfers to the old entity (creditor) the amount corresponding to the outstanding capital and accrued and unpaid interest and commissions”, he concludes.

Average savings of almost 140 euros per month

Changing your bank mortgage in Spain can mean a average savings of up to 138 euros per month, according to data estimated by Gibobs.com, a fintech-proptech startup specialized in getting the best mortgage on the market for free. This would mean a saving of more than 1,500 euros per year.

“Saving has become an increasingly difficult task, especially for those who have a mortgage. In high spending seasons, like September, It is important to sit down and reflect and recalculate expensesso it becomes a great time to save by changing your mortgage bank.”, says Jorge González-Iglesias Baeza, CEO of the company.

To achieve this, “it is important to rely on experts to find not only the best options on the market to achieve a lower interest rate, but also reduce the monthly fee, shorten the term or eliminate unnecessary commissions“Thus, Gibobs.com has estimated a significant savings potential between the average mortgage on the market and the most competitive option available. Specifically, the company considers that there is an average saving of up to 35,560 euros for fixed mortgages and up to 22,240 euros for mixed mortgages throughout the life of the loan.

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