We tell you what options there are to move from a variable mortgage to a fixed one.
In the decision to change from a variable rate mortgage loan to a fixed rate one should know a number of aspects: With the BBVA Fixed Mortgage you will pay the same for your house every month, without
– Variable rate loans: in variable rate mortgage loans, this is made up of a reference index (the most common is the Euribor) plus a spread that is fixed. The fee to be paid will vary with each revision based on changes in the Euribor.
– Loans via PaydayNow.net at a fixed rate: in mortgage loans at a fixed rate, the same installment is paid throughout the life of the loan.
– Mixed-rate loans: a fixed rate is applied to these loans during the first years of the loan, a period that usually ranges from 5 to 10 years, and variable interest is applied during the rest of the term. reference is usually the Euribor.
It is common for fixed mortgages to present a higher interest rate than a variable mortgage, in exchange for offering the peace of mind of always paying the same fee. Although initially, variable rate mortgages tend to have a lower interest rate, it may go up or down with changes in the reference index (the most common is the Euribor).
As for the amortization period, there are hardly any differences between the different types of mortgage loans and most of them cover a term of 20 to 30 years, although some banks offer amortizable mortgage loans within a period of up to 40 years in the case of mortgage loans. mortgage loans at a variable rate.
Steps to make the change
With the novation, the conditions that we had previously contracted with our bank are changed. They usually affect the interest rate, extend the amount of the loan or the repayment period. If we want to pass our variable rate mortgage at a fixed rate and wish to continue with our bank, we must request a novation of said mortgage loan.
Keep in mind that this implies a series of expenses. Some banks contemplate charging fees for mortgage novation and, on the other hand, a new public deed is required, which has a cost of about € 1,200 for an average mortgage of € 100,000. Another possible cost, depending on the type of novation, is the payment of the Tax on Documented Legal Acts, whose amount varies between 0.5% and 1.5% of the value of the loan, depending on the autonomous community. The appraisal of the property could also fit, depending on the entity’s risk policy.
The alternative to the novation of the mortgage loan is to change the bank entity, which is known as subrogation between entities. This change usually entails the modification in some of the conditions of your loan as, precisely, the interest rate to which you are subject.
As the novation of the mortgage, the subrogation to another bank brings with it a series of expenses: Commission by subrogation, a commission by subrogation that by law does not exceed 0.5% during the first 5 years of life of the mortgage (for loans formalized as of April 2003) or 0.25% from the sixth year, in addition to expenses of notary, Registry, agency.