Consolidation or real move: what is meant by subrogation of a loan
Changing accounts, insurance or mortgages has become quite easy today thanks to a type of operation already foreseen in the civil code, namely that of the subrogation. Focusing on financing, however, we cannot fail to note the fact that there are many mortgage subrogation offers on the market, while in the case of subrogation to a loan, the sections of banks suitable products are practically empty. We try to understand the reasons.
Criticism of the Bersani decrees
The difficulties we had in renegotiating or replacing the mortgage (given the centrality but also the inconvenience of registering the mortgage) led the government, in 2007, to approve the “portability” or subrogation that was specifically limited to this type of financing (see also Differences between mortgage and loan ).
However, in the case of personal loans, the legislator did not consider any specific intervention necessary, also depending on the simplicity with which a loan in progress can be extinguished by lighting a new one (perhaps using more convenient forms such as the Inpdap se you have the minimum requirements), and in particular through the existence of debt consolidation loans. It is no coincidence that this type of financing is present in almost every section of the financing of the various banks (Findomestic, Santander, Unicredit, etc.).
Current account and repayment of installments
Let’s make a premise: when we talk about the loan subrogation we are not talking about the portability of loan installments. Sometimes, in fact, you can feel limited to changing your account because the repayment of the installments is charged on the old one. Today, current accounts (even online ones) provide services that easily allow users to relocate and credit, while for debits it is almost always the owner of the banking relationship (old and new) that must take care of the displacements.
However, these procedures are not complicated. Generally, it will be sufficient to communicate to the bank or finance company with which the financing is in progress, the IBAN of the new current account, taking care to monitor the transition phase, so as to act promptly to avoid missed payments or delays in repayments, at least until the procedure is up and running.
The loan moves: fashion or opportunity?
What has made the subrogation of the loan very popular is the facilitation that occurs in the reduction of ancillary costs, such as appraisal, preliminary investigation, but above all those related to the mortgage (both as taxes and as employment of the notary). Obviously these are all aspects that do not exist in the case of loans, so it is the banks that strive to offer more or less attractive products. From here we have two conclusions:
- the cancellation of accessory costs is possible and not mandatory ;
- if provided, the costs of extinction must be paid (normally calculated in the extinction counts);
- any concessions are freely introduced by the succeeding banks and are not structural, but rather promotional.
So, when you hear about ” move or subrogation loan ” products, very often you go for a classic consolidation loan, which can have more or less advantageous conditions compared to the previous one, but which very often aims to make a more sustainable installment, or to combine better conditions with the request for more figures.
NB It is therefore essential to understand that debt consolidation is not a form of loan subrogation, but represents a product created to allow those who have more funding to merge the various installments so as to make the sole survivor more easily sustainable. However, this does not mean that the transition from multiple loans to one only also reflects the requirement of greater convenience which must instead be the basis for the subrogation of a mortgage.
Differences between the personal and the finalized
A request for funding includes few differences from the point of view of the procedure if a personal loan or a finalized loan is requested. In practice, however, if you want to replace the financing that is already in progress, there may be different conditions, especially if the replacement concerns the purchase of an asset such as a car with financing. In some cases this can be linked to the obligation to subscribe to ‘ad hoc’ insurance policies to protect credit (or even theft and fire, etc.).
With personal loans, instead, you enjoy greater freedom. In a change it is in fact necessary to ‘only’ pay attention to:
- rates and economic conditions with or without promotions;
- duration of the amortization plan (extending the duration the installment is lowered but the total of the interests could be considerably higher based on the French depreciation );
- amount of the extinction penalty;
- any accessory costs applied.
Assignment of the fifth and replacement
While coming under the personal loan category, the fifth assignment follows its own legislation, which imposed certain limits. These are due to the need to combine the assessments of the financial company or the bank, with those of the insurance company, both involved in the decision to grant the loan (to which is added the logical involvement of the employer).
All these conditions do not make it possible to “replace” the sale of the fifth through a renewal with total freedom. In particular, it is necessary to have repaid at least 40% of the installments that have been granted in the amortization plan. The only exception is the case of the renewal of a transfer of a duration not exceeding 60 installments to pass to a “ten-year” assignment for which these limits are not provided.