Renegotiation or subrogation of the loan: what is the best?


The positive trend in mortgages in recent years has brought the request for subrogations and renegotiations to the fore. Thanks to the favorable market conditions and the rates that remain at historic lows, the requests to revisit their mortgage are growing, as well as the number of customers who evaluate the possibility of scrap, shifting their interest towards healthier and more attractive loans . Further editorial at

The subrogation and renegotiation have the same purpose: to obtain a revision of the mortgage rates to pay less interest.

In installments, you pay the interest rate first, and then the capital, it is completely useless to review the loan when you are already paying the capital.

The subrogation of the mortgage

Mortgage Loan

The subrogation of the loan complies with the Bersani law of 2007 and consists in the transfer of a loan from one bank to another that applies a better rate. The new parameters may concern changes in the installment, but also in the type of rate applied, between fixed, variable and mixed . In addition, management costs and ancillary costs can also be reviewed. Transfer fees are the sole responsibility of the bank.

For the subrogation a formal request must be sent to both banks, which cannot be refused by the bank that disbursed the loan. Even if the law does not limit the number of times for the subrogation request, this is in fact limited to one, since an established third party could tend to refuse your further request.

The renegotiation

 The renegotiation

The renegotiation, unlike the subrogation, does not provide for the transfer of the loan to a second bank. It will be the bank that holds the loan agreement to renegotiate the parameters of the loan with the customer. Also in the renegotiation the notary and practice fees are charged to the credit institution.

Which one is convenient?

Mortgage Loan

What should be chosen between subrogation and mortgage? Obviously, it depends on the individual conditions proposed. The mutual subrogation offers greater possibilities for savings, but it is necessary to carry out appropriate investigations to verify the actual convenience. In this situation, contacting a Forsyte family credit advisor could prove to be a good choice, as it will provide qualified help to review your mortgage, seeking one with more favorable terms.

Leave a Reply

Your email address will not be published. Required fields are marked *