How to re-negociate your mortgage
How to re-negociate your mortgage
22/05/2015

Assuming that 10 years ago you applied for a mortgage to buy an apartment in Empuriabrava - Ampuriabrava (Costa Brava), accepting certain conditions. Since then, the bank tissue of Spain has changed, but also the labor market and the economic situation of many families.

After the crisis and several years of inactivity, we can say today that the credit has been reactivated and financial institutions are in a "war of mortgages" to see which bank offers the best mortgage terms.

This may be the time if you want to review your mortgage and pay a little less. Brava Home Standing your real estate agency in Empuriabrava, presents you what you can do!

1. Read before going to your bank

Before you go to your bank to request a down on your mortgage, study your particular case. Take your contract and read it carefully to be clear about what you can negotiate. This way you can speak with a credible basis.

2. What you can renegotiate

When you signed your mortgage you have accepted certain conditions in terms of payment, term and interest (interest rate, the benchmark index, the repayment period, the holders of the loans, the required capital, etc. .). These are the factors that you can try to re-negotiate, either with your current bank, or transferring your mortgage to another financial institution which offers better conditions.

So, if your main objective is to save money and get the best possible conditions, do not give up if your bank is inflexible, since you always have the option of going to see another bank.

3. Set yourself goals

You've already identified the banks that offer the best conditions, and you know exactly what you signed when buying an apartment in Empuriabrava. So you know what you want to get (as a minimum). Set yourself clear objectives for the negotiations, realistic and achievable goals, for example, bring a brochure with their offers for new applicants.

4. Reduce by accepting more products

When a bank offers very low interests, it is often because it requires you to subscribe to all kinds of ancillary products, such as home insurrance, auto insurrance, life insurrance, etc.

The acceptance is an option, but you need to carefully analyze which products it requires you to take and if these new products allow you to compensate economically in the medium and long term.

5. Renegotiate your mortgage, it's also about attitude

It's like when you try to get better rates on your phone service or have a new mobile phone offered, as they advertise great deals but only for new customers ... and you think it is very unfair after so many years of fidelity.

Well that's kind of the same idea, you must physically go to your bank and sit down to talk with your counselor with a friendly but firm attitude.

You must clearly state what you want to achieve and why. Then you will see whether yes or not your bank is willing to accept. If you see that they do not want to renegotiate your mortgage, mention that you are going to transfer your mortgage to another bank as an ultimate form of pressure, and if it does not work, you have your answer and you can begin to talk with another bank to see wich conditions they can offer you.