Changing your mortgage from one bank to another, known as mortgage subrogation, can be a strategic decision to improve your loan conditions and optimize your finances. In this guide we analyze when, how and why to make this change, as well as the associated costs and benefits.
Why consider changing your mortgage bank?
Main advantages of changing banks
- Reduced interest: Switching to a bank with lower rates can lower your monthly payments and the total cost of the mortgage.
- Improved loan conditions: Some banks offer more flexible conditions, such as reducing fees or eliminating linked products.
- Flexibility in payment terms: You can renegotiate the duration of your mortgage to adjust it to your current needs.
External factors that influence the decision
- Rises and falls of the Euribor: In variable mortgages, changes in the Euribor may motivate you to look for better conditions.
- Changes in mortgage policies: Promotions or incentives offered by banks may make subrogation attractive.
When is the best time to change your mortgage?
Is it better to change in a high or low interest rate environment?
- High rates: Switching can help you lock in a more stable rate if you fear a future increase.
- Low rates: This is the ideal time to negotiate better terms and take advantage of more competitive rates.
Signs that indicate you should consider a mortgage subrogation
- You have a high spread compared to current offerings.
- Your current conditions include unnecessary linked products.
- You are looking to switch from a variable to a fixed mortgage (or vice versa).
What steps should you follow to change your mortgage bank?
Evaluate offers from other banks
Compare the conditions of different banks, focusing on interest rates, terms and associated costs.
Consult with a specialized financial advisor
An expert can help you identify the best options according to your financial profile and current market conditions.
How to negotiate the best terms with your new bank
Present your needs clearly and take advantage of competitive offers to obtain favorable terms.
Request the subrogation and formalize the change.
The process includes the formal application, appraisal of the property and signing in front of a notary. Once approved, your new entity is responsible for settling the mortgage with the previous bank.
How much does it cost to change your mortgage bank?
Costs associated with the mortgage subrogation process
- Home appraisal: Mandatory for the new bank to evaluate the risk.
- Subrogation fee: Some banks apply a percentage of the outstanding principal.
- Notary and registry: Legal costs associated with the formalization of the change.
Who pays the costs of changing the mortgage bank?
Since the Real Estate Credit Law of 2019, the notary, registration and tax costs are assumed by the banks, although the client continues to pay the appraisal.
Advantages and disadvantages of changing your mortgage bank
Key benefits of a mortgage subrogation
- Reduction of interest and installments.
- Greater flexibility in terms and conditions.
- Long-term savings potential.
Risks and factors to consider before changing banks
- Initial subrogation costs.
- Time and effort in the process.
- Possibility of less favorable conditions in the long term.
Cases in which it is worth changing your mortgage bank
To switch from a variable rate to a fixed rate or vice versa
If the Euribor is unstable, moving to a fixed mortgage may offer peace of mind. If you anticipate declines, a variable mortgage could be more beneficial.
To reduce monthly payments
Switching banks can help you reduce your payments, freeing up cash for other needs.
To consolidate debts or improve liquidity
Some entities allow you to integrate debts into the mortgage, simplifying your financial situation.
Common mistakes when changing your mortgage bank (and how to avoid them)
Accepting the first offer without comparing
Not all offers are the same. Analyze multiple options to find the best one.
Not calculating the total costs of the change
Be sure to consider all expenses, including those associated with subrogation.
Not reviewing the terms of the new mortgage
Read the terms carefully before signing to avoid unpleasant surprises.
Frequently asked questions about changing your mortgage
How long does the surrogacy process take?
Usually between 2 and 3 months, depending on the speed of the new bank and the necessary paperwork.
Which banks offer the best conditions for subrogation?
This varies according to current promotions. Research banks with a reputation for competitive terms.
What documents do i need to change my mortgage to another bank?
- Deeds of the current mortgage.
- Certificate of outstanding debt.
- Appraisal of the property.
Practical tips to get the most out of your mortgage switch
How to take advantage of bank promotional campaigns
Some banks offer incentives such as the elimination of commissions or better rates during specific campaigns.
Digital tools to compare mortgages
Use online comparators to evaluate current offers quickly and effectively.
Useful resources for those considering a change of bank
Mortgage Simulators
Tools to calculate what your fees would look like after switching banks.
Mortgage advisor contacts
Experts who can guide you through the negotiation and subrogation.
Additional guidelines on subrogation and refinancing
Articles and resources that expand on this information to help you make informed decisions.
Changing your mortgage bank can be a strategic decision if made at the right time and with the necessary preparation. At Finance Luxe, we help you take advantage of digital tools and optimize your finances through effective strategies. Learn more about our services here.
Is It Worth Changing Your Mortgage Bank? Complete Guide 2025
Changing your mortgage from one bank to another, known as mortgage subrogation, can be a strategic decision to improve your loan conditions and optimize your personal finances. In this guide we analyze when, how and why to make this change, as well as the associated costs and benefits, based on current regulations.
Why Consider changing the Bank Mortgage?
Main advantages of changing banks
- Reduced interest: Switching to a bank with lower rates can lower your monthly payments and the total cost of the mortgage.
- Improved loan conditions: Some banks eliminate mandatory linked products or reduce fees.
- Flexibility in repayment terms: It is possible to renegotiate the duration of the loan to suit your needs.
External factors that influence the decision
- Euribor fluctuations: In variable mortgages, changes in the index can motivate you to look for better conditions.
- Bank promotions or incentives: Some banks offer special conditions to attract subrogations.
When is the Best Time to Change Mortgage?
High or low interest rates
- High rates: Switching to a fixed rate can offer stability against future increases.
- Low rates: This is the ideal time to negotiate favorable terms and save for the long term.
Signs to consider a mortgage subrogation
- The spread on your mortgage is significantly higher than what is currently offered.
- You have linked products that you do not need, such as insurance or specific accounts.
- You are looking to switch from a variable to a fixed mortgage (or vice versa) for reasons of stability or cost.
What Steps Should You Take to Change Your Mortgage Bank?
- Evaluate offers from other banks
- Compare interest rates, terms and associated costs among different entities.
- Consult with a specialized financial advisor
- An expert can help you interpret the offers and select the most suitable one.
- Negotiate terms and conditions with the new bank
- State your needs and take advantage of market offers.
- Request the subrogation and formalize the change.
- The process includes appraising your home, submitting documents such as a certificate of outstanding debt and signing in front of a notary.
How much does it cost to change a bank mortgage?
Expenses associated with subrogation
- Appraisal of the property: Mandatory to evaluate the risk. Its cost is borne by the client.
- Subrogation fee: Regulated by Law 5/2019, the initial bank may apply up to 0.15% during the first three years.
- Notary and registry: from 2019, these costs are assumed by the new bank.
Who pays for what?
- Bank: Notary, registry and agency fees.
- Client: Home appraisal.
Advantages and Disadvantages of Changing the Bank Mortgage
Key benefits
- Savings in interest and installments.
- Greater flexibility in conditions.
- Reduction of the total cost of the mortgage.
Risks to consider
- Initial costs of change.
- Possible less favorable conditions if you do not review the contract properly.
- Time and effort in the process.
Cases in Which Switching Banks Is Beneficial
- From variable to fixed rate (or vice versa)
- If you are looking for stability in a context of rising Euribor, the fixed mortgage is ideal.
- If the Euribor tends to fall, a variable mortgage could be more economical.
- To reduce monthly fees
- Switching banks can free up liquidity for other expenses or investments.
- To consolidate debts
- Some banks allow you to integrate other debts into your mortgage, simplifying your finances.
Common Mistakes When Switching Banks
- Do not compare offers: Investigate the conditions of several banks before deciding.
- Ignore total costs: Consider all associated expenses.
- Do not review the new conditions: Read the contract carefully to avoid surprises.
Frequently Asked Questions about Mortgage Subrogation
- How long does the process take?
- Between 2 and 3 months, depending on the procedures.
- Which banks offer the best conditions?
- This varies according to current promotions. Use online comparators to research.
- What documents do you need?
- Deeds of the current mortgage, certificate of outstanding debt and appraisal of the property.
Practical Tips for Getting the Most Out of Your Business
- Take advantage of promotional campaigns: Some banks eliminate commissions during certain campaigns.
- Use online comparators: Evaluate rates and conditions quickly.
- Consult mortgage simulators: Calculate how your payments would change with the new entity.
Changing your mortgage bank can be a wise decision if it is done with the proper preparation and considering the current laws. At Finance Luxe, we guide you to optimize your finances and make the most of your mortgage opportunities. Find out more about our services today!
