What Is Subrogation of a mortgage loan?

It is the possibility that the law grants the debtor of the mortgage bank to change your mortgage. (The regulation is in Act 2 / 1994, 30 March, regulating the subrogation and modification of the Mortgage Loans)

So that surrogacy is a change of bank, I have a mortgage on Bank 1 and Bank 2 change, because it gives me better.

How does subrogation?

There must be a mortgage, which is formalized in public deed, under these conditions, the substitution operates even without the approval of the bank that has the mortgage.

The bank that wants to move your mortgage, you must submit a binding offer, which include all the conditions of new credit. If the property on which rests the mortgage has more than one, the bank should take all of them.

If you accept the offer, the new bank will address the above and request a certificate of the total amount of credit debt that has the old bank deudor.El has a time limit of 7 calendar days to deliver the certificate.

But the former can destroy the subrogation bank, within 15 calendar days if he appears before a notary public and declares its willingness to enter into a new credit, improve the conditions offered by the new bank.

If this happens, the subrogation is effective with the sole condition that the second bank established to have paid the amount of outstanding mortgage loans, the former bank.

Regarding fees, the Act provides for three possibilities:

That the mortgage had not been agreed, in this case there will not be charged pact ninguna.Si pay fees equal to or less than 1% shall be paid the agreed commission comisión.Si have been over 1 percent will be paid only 1% The surrogacy agreements are modifiable:

Enlarge or reduce the capital hipotecaLa amortizaciónModificación term modification of the type of the method or system interés.Cambiar calculation amortizaciónLa system changes affected the personal guarantees, additionally, to mortgage credit. Are there tax benefits for the subrogation?

The notarial will not pay the Stamp Tax.

Should always turn to surrogacy?

On the assumption of the mortgage is no cost: notary, land registry, etc.. So before you start this procedure, ask your new bank, to explain, in writing, all costs will have to pay. If expenses are high before starting the procedure subrogation should negotiate with the current bank modifications are intended to be on our mortgage. If the bank does not agree to them, it's time to start the mechanism of subrogation.

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