How to move a mortgage loan? Subsidiary, portability and replacement

How to move the mortgage to save on interest and pay lighter installments? The solution is the loan subrogation operation, one of the innovations introduced in the credit sector by the decree, then converted into law in 2007 (law n. 40/2007). This legislative act has proposed numerous innovations in the field of financing, including many concerning the management of mortgages. In addition to the subrogation, in fact, the decree also intervenes on another aspect, the early repayment of the loan for the purchase of the property. for a critique

The subrogation of the loan is an operation that allows the portability of the loan

Rather its transfer from one bank to another, which may offer more advantageous conditions. When a customer has signed a loan with a particular credit institution, he undertakes to recognize certain conditions for the bank, such as a fixed or variable interest rate established by contract. Given that the duration of such a loan can also be very long, in the meantime the financial conditions of the borrower or those of the markets could change, making the loan agreed at the timeless convenient. This happens in particular when a variable rate mortgage is chosen and the reference rates increase over time, increasing the cost of the loan.

If you find a bank that offers better conditions, today with the subrogation it is possible to transfer the mortgage to this institution, with some discounts: first of all, the movie does not include the extinction of the mortgage on the building and the signing of a new guarantee, thus avoiding the costs of this bureaucratic practice. Furthermore, the new bank will bear any costs for the borrower. The only expense that remains to be paid is 35 euros for the subrogation registration fee in the property registers (registration tax). Another feature of the subrogation is that the residual debt to be repaid remains unchanged.

To know how to move a mortgage it is also possible to inquire about replacing the loan

Even in this case, you can turn to another bank that offers better conditions, but, unlike the subrogation, the replacement involves the extinction of the loan in the course and the signing of a new loan with the new bank. This step, in addition to the burden of having to pay the remaining debt, however, also provides higher notary costs, because it is necessary to carry out various contractual steps.