Real guarantee represented by the mortgage on a property
There can be many reasons that lead to wanting to change banks, from the more technical and functional ones, such as better financial products offered by the competition, to personal ones. In these cases, if transferring a current account from one credit institution to another is a simple operation, transferring mortgages or loans supported by the old account becomes more complicated because it is not so automatic that the new bank intends to take the risk that this entails .
However, there is the subrogation or subrogation, a tool that allows this operation and that is offered by all banking institutions; it must be said, however, that this tool can be used to “move” mortgages, or those loans that have a real guarantee represented by the mortgage on a property. The substitute for the loan technically does not exist, precisely because the personal loan does not offer truly solid guarantees and therefore the banks are not always available to take charge of it: however, there are particular products (such as debt consolidation) that allow you to carry out this function.
Let’s see what are the concrete possibilities to move all personal loans, mortgage or unsecured loans.
What is the surrogate
The subrogation is a particular type of contract that allows you to transfer the mortgage from one credit institution to another by keeping the same mortgage already on on the property subject to the mortgage and without incurring additional costs. Here are the main features:
- the subrogation is defined as “purpose loan” and can only be subscribed for the residual capital amount;
- rates and conditions can instead be renegotiated;
- mortgages granted by banks and those granted by Government Agency can be substituted.
How do you subrogate a loan?
We have already said that the subrogation for a personal loan is not granted. How then to transfer a loan to another credit institution or to another financial institution?
There is a form of personal financing that is well suited to the need to terminate previous debtor relationships: this is Debt Consolidation.
How does it work and what are the characteristics of Debt Consolidation?
Basically, Consolidation is a financial solution that allows you to group multiple loans into a single loan thanks to which you can pay off the present exposures and, in case of need, also obtain additional liquidity.
Debt Consolidation is proposed by all the major banks and financial institutions to name just two names, but there are also specific loans with agreements with Government Agency that offer particularly convenient rates and conditions.