twistedmelon

Hi all,
I have a mortgage with la caixa. I want to leave them and have closed all other account and cards with them but they say I must keep my current account open to pay the mortgage.
I was thinking that I would be able to pay the mortgage by direct debit from my other bank but they say this is not poss?
I have read a little about subrogacion which is a way of transferring the mortgage to another bank, anyone have any info on this?
Many thanks

Veleta

Subrogación, as I understand it, is when you transfer the title of a mortgage from one person to another, ie when you sell your house you pass the existing mortgage on to the new owner and just change the name of the titular.

In your case I think you mean you want to cancel one mortgage, and take out a completely new one with a different bank. Nothing to stop you from doing that.....it is the same as in the UK. Just shop around as you would normally and use the proceeds from the new mortgage to cancel the old one.

Hondon Rock n Roll

Just had the same problem with Banesto, closed the account and transferred utilities standing orders to another bank. They have said as I have the mortgage with them its in the original contract of the mortgage that I must have an account with them to pay the mortgage and wil not accept a direct debit from another bank. They have told me off course I can pay off the mortgage and take one out with another bank. A new mortgage application with another bank will entail valuation fees, set up fee usually 1%, solicitor and notary fees all which adds up to quite alot unless you can get another bank to pay your transfer fees. Banesto have now opened an account for me where I just pay the money in so they can take the mortgage and this account serves no other purpose so there is no monthly maintenance charge.

twistedmelon

Hondon R&R,
You've hit nail on head there. La Caixa are exactly the same, can you tell me what this new account you have is called?

Veleta,
You are right.However,from what I read I think that the new Bank becomes the new owner as such (which of course they would be).
As Hondon says it's the costs involved here are so high.

Many thanks for your replies, all the best.

snikpoh

Coincidentally, the one bank that I know of which offers to pay all charges for moving a mortgage is BANESTO!!!

I was considering moving to them, can you let me know why you were unhappy with them and who you've moved to.

thanks

Hondon Rock n Roll

The new account is "Cuenta de ahorro". Only have a book for paying in the money for them to take the mortgage payment. No card as that would be additional costs. Have opened the account for paying all bills with Ruralcaja as their card charge is €6 per year and an annual charge of €2.70 if the balance in the account is over €300 or €5.71 if under.

Hondon Rock n Roll

Unfortunately still with Banesto for the mortgage as it costs too much to move, although their interest rate on the mortgage is 5.34, so hoping that will come down when it is reviewed next month. Problems I have had are they have paid out money out of the account without my authorisation, €5 a month monthly charge, €15 for a debit card, approx. €44 for the joint account check to see if we were non resident although I had told them I was a resident. They then froze the account for a month as they discovered I was a resident and my husband was non resident as head office in Madrid didn't know how to deal with it, so I couldn't pay any money so no bills were being paid, resulting in internet, and mobile being suspended, Suma, Iberdrola and Telefonica direct debits not being paid. Hence I changed to Ruralcaja for all the bill payments.

Sharon B

From my experience and the banks I have had accounts with here in Spain, that seems to be the norm. And when you have numerous accounts with the same bank it can be a nightmare deciphering where money has been transferred eg from joint to business or vice versa without any authorisation (a simple phone call would be adequate). Then they wonder why you are going to another bank!!

twistedmelon

Hondon R&R,

Many thanks for that info, just what my bank balance needed.
Oh for a nice straight forward and free account. Maybe we should start an expats bank, there'd be plenty of customers.

missile

I just opened a Barclays.es = a charge free current account with a debit card and internet banking. I believe they will pay for mortgage transfer.

Casita

La Caixa charge 20euros annually per card and 30euros for annual maintenence, I told them they were expensive and Cajarural were much cheaper. He said 'If you want to change that's up to you'

I was tempted but they do speak English (and French) and I don't know if I can be bothered with the hassle.
However when I first opened the account, they did give me a lovely Polyester bath towel and a pack of Spanish playing cards

Plus the bank manager is gorgeous and my o.h. is smitten by the assistant manageress