The current economic situation makes it difficult to pay mortgages
We live in a very complex economic time. Many people struggle to meet their mortgage payments each month, especially if they have an adjustable rate loan. These types of loans depend on the Euribor, which reached 4.1% in September and approached its highest levels.
In addition, the real estate market has an imbalance between supply and demand. There are more people looking for houses than there are houses available. This drives up prices and makes it harder to get a mortgage.
A possible solution: negotiate the terms of the mortgage with the bank
If you are one of the people who suffer to pay the mortgage every month, you can try to negotiate with the bank to improve the conditions of your loan. The mortgage is a contract between you and the bank, and therefore you can always come up with alternatives that are more beneficial to you.
But how can you negotiate with the bank? The first step is to contact your institution and explain that you want to review the terms of the mortgage. You must also tell him the reason why you want to do it and present him with data to support your request. For example, if you have improved your employment situation and can take on higher installments, but with lower interest.
What to do if the bank does not agree to negotiate?
If the bank ignores you or puts you in trouble, don’t be discouraged. There are other options you can explore. One of them is to look for other entities that offer you better conditions for your mortgage and that are willing to subrogate your loan. This means that the new bank would take over your mortgage and you would become their client.
If you find an offer that interests you, talk to your bank again and show them the conditions offered by the other institution. Ask him to match or beat this offer. If it does, you will have managed to renegotiate your mortgage without changing banks or paying other fees. If it doesn’t, you can decide whether you should switch banks or not.
conclusion
Negotiating with the bank the terms of the mortgage can be a good way to save money every month. But she is not the only one. You can also consider other alternatives, such as extending the term of the mortgage, changing the interest rate or reunifying your debts. The most important thing is that you analyze your situation well and that you look for the best option for you.
