How much you can save on your mortgage if you change banks

 

For approximately half a year, banks operating in Spain have been waging a new trade war to “steal” mortgages, that is, to capture mortgages from other entities. To this end, many finance companies have launched attractive surrogacy offers (the technical name of this operation) with which they propose to outside clients to move to improve their conditions. But is it really worth it to make this change of entity? A study carried out by the banking comparator HelpMyCash.com concludes that yes, because with it you can get an average total saving of about 30,000 euros.

The key to everything is in the interest reduction that can be achieved when transferring a mortgage from one bank to another. A few years ago, especially between 2010 and 2015, mortgage loan rates were significantly higher than they are now: spreads of around 2% in variable mortgages and of more than 5% in fixed rates. Now, on the other hand, the interests are much lower, since they are below 1% in the first modality and rarely exceed 1.75% in the second.

Thus, those who signed their mortgage with higher rates than those now can make a subrogation to go to a bank that charges them a significantly lower interest. In this way, according to the comparator’s study, these customers can save an average of about 100 euros per month, which would be 30,000 euros for a pending term of 25 years.

Anyway, as is logical, the savings that can be obtained when changing banks can vary greatly depending on the current conditions and those achieved after the transfer. For this reason, HelpMyCash.com has created a free surrogacy calculator with which it is possible to know how much interest would be left unpaid in each specific case.

What banks offer surrogacy?

This operation also pays for the bank that assumes the mortgage, since it will collect future interest on a loan (even if it is reduced) that was not originally yours. And the biggest proof that entities are interested in surrogacy is that, Since May, the number of finance companies offering this option has grown exponentially.

Bankia’s subrogation offer, for example, appears prominently on the mortgage page of the bank’s online portal. With it you can get a variable interest from Euribor plus 0.99% or a fixed rate of 1.85%, only in exchange for direct debit of the payroll. Also noteworthy are the ING proposals (from Euribor plus 0.99% with payroll and two insurances) or MyInvestor (fixed rate of 1.59% at 20 years without bond).

Sign a new mortgage, the alternative

Other banks, on the other hand, propose to carry out another operation to attract mortgages from other entities: the cancellation of the current mortgage loan by hiring a new one with better conditions. According to HelpMyCash.com, this option entails higher costs (the costs of registering the original credit must be paid), but they are offset by the savings obtained in interest and other items.

Among the entities that offer this service stands out, for example, Openbank, which in addition to financing the expenses associated with the cancellation, allows obtaining a variable interest from EurÃbor plus 0.79% or a fixed interest from 1, 50% at 25 years (in exchange for payroll and home insurance). Santander Bank It also has a product without an opening commission to refinance one mortgage with another, although where appropriate the new conditions are adapted to the client’s profile.

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