How to benefit from the descent of the Euribor?
05.02.2009
It is not going to be easy, but there is not doubt that it is possible to improve the conditions of the mortgage by means of a novation of the mortgage or changing bank replacing with the loan mortgage.
There are two principal measurements that the analysts indicate fianancieros to benefit from the first moment of the vertiginous descent of the Euribor.
With the crisis that we have above, the only good news comes from the continued descent of the index Euribor because he supposes a future reduction in the quotas of our mortgages. But in the cases in which the review has been carried out in December and in January us encotramos with the unpleasant surprise of which the letter has increased.
The reason of the increase is that the current Euribor has not been applied to the mortgage loans. The banks apply to the review of the loan the average of the Euribo of two months behind, depending on the conditions with which the contract has been signed. I have here because of so many unpleasant sopresas with the mortgage.
The most painful thing is ecuchar of continued form when the saving calculations are done with the new Euribor. For example, for one average mortgage credit for 135.200 euros to 22 years with a differential of half a point + Euribor that has had the review in November and December, awards the official October valuation when the Euribor was in the highest levels to 5,248 %, the quota amounts to 903,51 euros.
The same mortgage on equal terms checked in this month will have a letter for 700,21 euros, more than 200 difference euros because 2,5 % will be updated, most likely, with the Euribor.
At this point of the movie, it is not descartable that the European Central Bank keeps on cutting the official types away with what, hoping that the logic should be imposed, the Euribor will pronounce more descents. Therefore the imbalance in the quota payment can extend for several months.
It exists several solutions
Different solutions exist to benefit from the fall of the Index Euribor from the first moment. From different consumer societies the recommendation to come to the bank to renegotiate the conditions of the mortgage. The first option is to realize a novation. Namely to change the conditions of the loan without changing for it entity. The Consumer society (OCU) tells that this operation implies a few costs, which are they are reduced compared to the reduction of the mortgage quota that is obtained.
But the consumers warn that “it is quite probable” that the banks do not accept the novation. If they do it, the entity will want to apply a commission on the capital. According to the Users' Association of Banks, a habitual practice is Boxes and Insurances (ADICAE), for it he advises to check of above below the contract to find the above mentioned commission and to negotiate it. “The conditions that they usually negotiate are the interest rate, the term, and tax benefits, like the exemption in the Tax on Documented Juridical Acts and others of character registral”, points out ADICAE and adds that it is the most economic option for the client.
The normal thing is that the banks are hard in the negotiations and push the novation back. In this case the best thing is to come to the "market", to look between other better banks for conditions to replace with the mortgage, to move the mortgage loan to another entity. With a better offer under the arm, the sure bank that is more lax in the negotiations of the novation. “To threaten to replace with the mortgage in the competition is usually a cash. It is a weapon to press to the bank”, indicates Ángel Bouzas, general manager of Freedom Finance, company of advice and financial intermediation.
The substitution is a more expensive enough and complicated option, but it is worth it if the denial of the financial institution is received.
Comments
One Response to: “How to benefit from the descent of the Euribor?”
Hello, I have a mortgage of open credit, with IRPH +0,25, MY DEBT IS 160000 EUROS and me kedan approximately 23 years aprox. I have tried to negotiate with the caixa catalunya, k it is where I have it. And they say that k he should wait to the review, k is April 1, and later they will see I hope they can look of doing a bonus, if apruevan the same as above. What other routes can I have? or more advisable, especially if they do not accept it to me. Thanks. A greeting.