The rate increases carried out by the European Central Bank between 2022 and 2023 have been a double-edged sword for Spanish financial entities. On the one hand, it has allowed them to increase the profit margin they obtain on their mortgages, since they can now grant them with a higher interest. However, the increase in the price of these products has significantly reduced contracting: according to the National Institute of Statistics, the number of loans registered on housing has decreased by 14% so far this year.
The banks, therefore, will try to lend more money in the coming months to cover up their figures. And one of the ways that it will use to meet this objective will be refinancing. According to the financial comparator HelpMyCash.com, in the fall there will be more entities willing to renegotiate mortgage loans already signed to improve their conditions (reduce interest, go from a fixed rate to a variable one...), either through agreements between bank and client , through a mortgage subrogation or through the signing of new credits.
From the comparator they remember that there are various ways to modify the conditions of an already signed mortgage.
According to HelpMyCash, the number of clients who wish to modify the conditions of their mortgage has grown significantly over the last year and a half; especially among those who have a variable interest linked to the Euribor. The fees paid by these holders have skyrocketed, as the index has gone from trading negative to exceeding 4%. And consequently, there are more and more people who want to switch to a fixed or mixed rate to get rid of the Euribor or who intend to reduce their differential to lower their monthly payments.
Many of those who want to refinance their mortgage, however, have not carried out the operation due to the high interests offered by banks lately, both at a fixed rate and at a mixed or variable rate. However, according to the comparator's analysts, it is very likely that entities will improve their prices in the coming months, as they will try to attract clients from other banks (or keep their own) to increase their mortgage balance before the end of the year.
Therefore, this may be a good time to change a bank mortgage or to renegotiate with the entity itself, since you will probably be able to get better conditions than a few months ago. Now, not all banks will follow this policy, so all options will have to be explored to successfully refinance the loan.
According to HelpMyCash, if the client wants to obtain the best possible conditions when refinancing their mortgage, they should speak with their own bank and contact other entities to request subrogation offers or request a new mortgage loan. This way, you will be able to compare all the options on the market, make numbers and assess which proposal is the most profitable for you.
This process, however, does not have to be managed alone. Hiring the services of a mortgage broker can be useful in these cases, as this intermediary will contact other banks to find refinancing offers. In parallel, the client may try to obtain a proposal from his entity, which he may later compare with those obtained by the broker.
