The trick to lower your mortgage payment that not many know

2023-10-16 22:43:30

The difficult economic moment that Spain, and many more countries, are experiencing, Today it causes many families to have problems when paying the mortgage. To this we must add the large increases in the installments of all those who contracted variable rate mortgages.

Housing continues to be a problem for Spaniards. Growing demand, in the face of limited supply, is exacerbated by rising mortgage interest rates. The Euribor has reached levels close to historical highs, reaching 4.1% in September. This has led to an increase in the cost of mortgages.

Negotiating with the bank is a strategy that, although simple, can be effective. Imagine your mortgage as an agreement between you and the bank, and as with any agreement, there is always room for negotiation. This involves sitting down with the bank and discussing whether they can offer you more favorable terms.

Only 2% of people in Spain have tried to renegotiate their mortgagebut it could be a smart strategy, especially in the current economic climate, where many families have seen the cost of their mortgages skyrocket.

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In simple terms, it is about asking the bank if it is possible to make things easier. Many people don’t even know that this is possible, and only 54,000 families have tried. However, as with any agreement, many have been successful.

Steps

The first step is to contact your bank and express your interest in improving the conditions of your mortgage. Justify why you want to do it and present arguments supported by datasuch as an improvement in your financial situation and a timely payment history.

If the first try doesn’t work, show that you have alternatives. Inform the bank that you have received offers from other financial institutions and that you are considering changing banks if you do not get what you are looking for. If your bank has obstacles, Look for other institutions willing to take on your loan and offer you more favorable conditions.

If you consider that changing entities is a complicated process, return to your bank with offers from other entities and ask them to match or improve the most compelling offer. If they manage to do it, you will have renegotiated your mortgage without having to change entity nor incur additional commissions.