Canceling the mortgage in the Property Registry is a procedure that, in general, is carried out once the entire debt has been paid to record that the property is now free of encumbrances.
But its recent increase has to do with one of the most effective ways to improve the conditions of variable mortgages that are recently becoming more expensive.
And those who have been able to have repaid their loan early and settled the debt completely. Those who don't have opened a new—and better—mortgage with another bank and, with it, have canceled their debt with the original bank.
Negotiating a change of conditions with the bank is a dead end. Banking activity is not based on improving the mortgages of its current clients, but on attracting new users and closing new contracts. As with telephone companies, sometimes it is more worth migrating to another that offers you a more interesting offer than to stay with the same one as always.
The rise in registration cancellations in 2023 corresponds, therefore, to these holders who are looking for solutions outside their current banking entity to save themselves from the interest rate increases that have occurred in Europe.
That is what the agents of the mortgage intermediation company Housfy Hipotecas tell us, who, in addition, with their years of experience in the market, have concluded that the most effective option when looking for better conditions is to cancel the current mortgage and open a new one with another bank.
This allows the mortgagee to modify any aspect of the loan, be it the interest rate, term, capital, etc., unlike mortgage subrogation, with which the interest rate can barely be revised.
It is not difficult: the process is almost the same as when taking out the initial loan.
Check if your current contract includes any commission for early repayment – now free if the mortgage is variable – and keep in mind that the registration cancellation may cost you more if you entrust the procedures to your bank instead of hiring an agency or carrying them out yourself. account.
