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Is it convenient to pay the subrogation expenses to change the bank mortgage?

Currently, many banks offer us to change our variable  Phh mortgage to a fixed one through subrogation, that is, transferring our loan from one entity to another. This modification may interest us if we do not trust the Euribor and prefer to pay a constant fee, but how much can it cost us? In this article, we will explain what expenses must be paid to formalize this change and we will see with which entities we can carry out this type of refinancing.

The cost of the commission for moving from the variable rate to the fixed rate

The first thing we have to know if we want to switch to fixed interest is that they can only charge us a commission for that modification. This is established by Law 5/2019 (the new mortgage law), which also stipulates what the cost of this charge may be :

  • Up to 0.15% on the outstanding amount if we make the subrogation during the first three years of the life of the credit
  • % if we make the change after that period has elapsed.

This measure is retroactive, so this is the maximum commission that can be applied to us even if a higher commission is indicated in our deed. Now, this is only valid if the only modification we make is to go from the variable type to the fixed one.

For example: if we want to transfer a mortgage with an outstanding amount of 100,000 euros to the fixed-rate, this commission may cost a maximum of 150 euros. This charge could only be applied to us if we formalize the transfer in the first three years of the loan.

Do I have to pay other expenses for surrogacy?

In addition to the aforementioned commission, other expenses associated with surrogacy must also be paid. By law, as clients we will have to pay the following:

  • The cost of the appraisal has an average price of about 300 euros.
  • The cost of the copy of the deed of subrogation does not usually exceed 50 euros.

The current mortgage regulation establishes that the rest of the expenses must be paid by the bank (management and notarial and registry fees). There are entities, in addition, that offer to cover some of the costs that correspond to the client.

With which banks can I change a variable mortgage to a fixed one?

As we can see, this operation costs little money, so it can pay off if our wish is to have a fixed interest to pay a stable fee. But with which banks can we carry out this change? 

Kutxabank also finances the cost of the commission for changing our mortgage to the fixed-rate, while ING offers to pay the appraisal.

These are some of the banks with which we can formalize this modification, but others can also offer us good conditions. For this reason, it is advisable to go to several entities, see what they offer us and compare the different options to assess which one would work out best for us.

If we want to see which banks offer the best conditions, we can access the following subrogation ranking.

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