Three ways to refinance a Spanish mortgage
1) Subrogation: the new bank pays off the old mortgage in your name and replaces it. The old bank has 15 days to match the offer (right of first refusal). 2) Novation: same bank, renegotiated terms (rate, term, conditions). 3) Full refinancing: new mortgage, old one cancelled and discharged from registry.
When refinancing makes sense
Refinancing makes sense when the rate differential is large enough to recover the costs (registration, notary, valuation) within a reasonable period. Typical break-even point: 18–36 months. If you plan to keep the property longer than that, the savings are real.
Typical savings example
€300,000 mortgage, 20 years remaining, current rate Euribor 12M + 2.5% (effective 4.8%). Subrogating to Euribor 12M + 1.2% (effective 3.5%) saves €200/month. Over 20 years that is €48,000 in absolute savings, well above the €2,000–€3,500 refinancing cost.
Variable to fixed switch
Many owners with variable mortgages signed when Euribor was negative (2016–2021) are now exposed to high payments. Switching to fixed can lock in current rates around 2.7–3.5% with predictable payments for the full remaining term.
Our process
1) We review your current FEIN and mortgage deed. 2) We submit subrogation proposals to 3–5 banks. 3) We present the best offer with a cost-benefit analysis. 4) We coordinate notary, registry and your existing bank's right of first refusal period. 5) Notarial signature and registry filing.