2023-09-21 09:48:03
If things follow their natural course, the process of ask for a mortgage ends with the cancellation of registration. Although a mortgage can also be paid off prematurely, which is happening to a greater extent this year than in others. Below we will tell you why the cancellation of mortgages increases in 2023 so that you can decide if it is convenient for you to join the trend.
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What is the cancellation of a mortgage and when can it be carried out?
Mortgages, when they are established, are registered in the Property Registry. Cancel a mortgage registryTherefore, it means carrying out a procedure that formalizes the fact that a home is free of charges.
To get rid of a mortgage permanently, it is not enough to pay the last installment; then it’s time to do the cancellation of the mortgage in the Registry. But you can also cancel your mortgage before you finish paying it. If you do, it is because you are going to take out a new mortgage with another bank, in view of which you will use the new loan to pay off the old one.
Carrying out the procedure yourself will not cost you a lot of money, but it can be somewhat complex. If you ask the bank to do it, everything will be very easy, although you will pay an extra commission. You have to ask for the zero debt certificate to the bank, take it to the notary to sign it, complete the Documented Legal Acts document at no cost and, finally, go to the Registry to formalize the cancellation.
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Data on mortgage cancellations in 2023
According to the INE, in March 2023 they were canceled 44.171 mortgages, which represents a maximum since May 2008, in the midst of the bursting of the real estate bubble. In the first four months of the year, a total of 147.465 registration cancellations, almost 8% more than in the same quarter of 2022.
The rebound is such that, since mid-2022, cancellations exceed mortgage constitutions. The explanation, naturally, is given to us by the ECB’s rate increases and the difficulties they are causing for mortgage holders.
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The reason why cancellations have increased in 2023
Faced with fees as high as those that the Euribor inflicts on variable mortgages, some try to improve your mortgage through novation, the change of conditions. Others, however, prefer cancellation. Among the latter, there are two action plans:
Pay off the mortgage early. Open a new one in another bank.
If you have enough savings, early repayment is a great option. It simply consists of paying off the mortgage ahead of schedule. In this way, due to the characteristics of the French amortization system (the most common), the mortgaged jumps over the effects of the rise in the Euribor.
Now, most do not have enough savings to do so. In that case, a very common option is sign a new mortgage with another bank and use the money to pay off the previous one. This is the best way to get a truly different and more favorable mortgage. You can use the mortgage comparator from Housfy to explore the mortgage market.
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Give your mortgage a facelift with the help of Housfy
Now that you have seen why mortgage cancellations increase in 2023, you may think that the time has come to improve your loan. There are different options to protect against the rise of the Euribor, and the mortgage brokers Housfy Mortgages know it all.
They deal directly with the banks, manage all the paperwork and present you with several options so that you can choose the one you like best. And don’t worry: the mortgage world is not simple, and our experts They will solve all your doubts and they will explain each aspect to you as many times as necessary.
Housfy improves your mortgage and helps you save on your paymentWe negotiate with banks to offer you better conditions
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