Reinventing mortgages: The unknown potential of subrogation
Mortgage subrogation is presented as a fresh and extremely attractive alternative for those looking to improve their financial conditions. This practice allows you to transfer your mortgage from one bank to another, with the advantage that it is not required to cancel the current mortgage. Instead of starting a new process, the terms of the loan are simply renegotiated.
BBVA: A key player in the mortgage scene
In the Spanish context, BBVA stands out for offering a particular approach to mortgage subrogation. The varied conditions it presents can translate into significant improvements for the client, who is considering this path.
Advantages of surrogacy with BBVA
One of the highlights of subrogation with BBVA is the absence of commissions for opening a new mortgage loan. This represents a great initial saving, as no additional expenses such as management, notary or registration will be generated. While it is true that if a new appraisal of the property is required, the cost will fall on the client, this headache is compensated by the improvements that can be obtained.
Significant improvements when taking out a new mortgage
Opting for surrogacy with BBVA can open the door to several improvements worth considering:
Reduced interest rate
The possibility of getting a more competitive interest rate is one of the main reasons to explore this option. Reducing the financial burden over the term of the loan can translate into considerable savings.
Flexibility in the type of mortgage
Subrogation allows customers to adapt their mortgage type, for example, from a variable rate mortgage to a fixed rate mortgage, which offers more stability in the face of market fluctuations.
Fewer linked products
The possibility to reduce the number of additional products required is a well-valued advantage. This may include eliminating or reducing obligations with unwanted insurance or associated accounts.
Adjustment in repayment terms
The repayment term can also be reassessed, allowing customers to better tailor it to their particular financial needs.
Requirements for a change of banking entity
For anyone interested in surrogacy, it is vital to consider a number of requirements. Maintaining financial stability and a regular income is critical to ensuring hassle-free mortgage payments.
In addition, it is recommended that the outstanding balance of the mortgage does not exceed 80% of the value of the property, which provides an adequate level of collateral and reduces the risk for the bank.
An opportunity we must not let pass
In short, mortgage subrogation with BBVA can represent an excellent opportunity for those looking to improve their financial conditions. With a different approach to mortgage renegotiation, exploring the possibilities offered by this new route can translate into significant benefits, both in terms of savings and flexibility.
