Loan subrogation – Transfer, removal or consolidation?

Loan subrogation – Transfer, removal or consolidation?

Loans typically guaranteed by mortgages, from those offered by banks to those disbursed by financial companies or by INPDAP, have become the easiest to substitute, thanks to the portability of mortgages, institutionalized in 2007. In the case of unsecured personal loans, the situation has not instead, it underwent major regulatory changes.

One of the criticisms that were made of the various ‘Bersani decrees’ concerned the absence of the classic loan within the possibilities of pure and simple portability. To compensate for this lameness of legislation, some banks have organized themselves by offering products often indicated with the terminology of moving loans or similar.


How to substitute loans?

How to substitute loans?

The need to change the financing in progress, with one that has better conditions (a fundamental element to be able to obtain the subrogation of mortgages) or that overall is more sustainable in repayments, determines the possible solutions that we can put in place. However, since there is no real subrogation of the loan, it is possible to change the financing in progress even with another that has no requirements for convenience or greater sustainability.

This is because the absence of the mortgage and the typical formalities of a mortgage are not there, and therefore you are free to move as you see fit, both for better and for worse. In any case, from a merely practical point of view we can opt for three main alternatives which are:

  • the assignment of the fifth;
  • the consolidation loan;
  • moving house or moving house loan.


Moving the loan: not real portability but functional and easy to obtain?

As mentioned, some banks have introduced loans with improved characteristics and conditions compared to the previous ones. This choice was made because from some research conducted by the ABI it was clear that when you have customers with a medium-term loan in progress, it is easier to be able to have it for other products, first of all the current account. So to increase customers, taking advantage of specific promotions mostly with a temporary nature, loans are offered with convenient rates and bonuses based on more or less generous repayments .

These ‘offers’ start from the possibility of extinguishing the loan that you have with another bank, turning on a new one at the credit institution that activates the promotion. If we compare these proposals, the most important aspect is that of duration: the ‘facilitated’ repayments are made available only for loans with at least an average duration (generally greater than 48 months). Even if in these cases we speak of loan subrogation, it is evident that this is in fact a replacement .

Warning: this ‘mechanism’ should not be confused with the portability of the loan , which occurs when the payment of a loan installment is moved from one account to another, simply by providing the new bank details to the financial or lending bank, or by taking advantage of the account removal functions. These can be activated through a simple digital procedure both partially (only for some credits and debits) and for all those present on the previous account.


Loan consolidation: from many loans to one

Loan consolidation: from many loans to one

Loan consolidation, on the other hand, is the loan designed to transfer existing loans by merging them into a single new loan which consolidates and replaces them. Also in this case we cannot speak of a true subrogation but it is a system that remains more faithful to the criterion of convenience that must be present in the removals of mortgages with portability.

The procedure is well defined although it may have some variables depending on the lender. Precisely for this reason it is necessary to contact the banks that provide this type of product directly, such as Lendomestic , Onicredit , Credimild to name just a few. For this type of solution, the main advantage lies in the fact that quite large sums can also be requested, but which must in any case be equal to the sum of the residual capital plus the relative extinction penalties provided for by the extinction accounts of any other financing that is intended to be consolidated.


The assignment of the fifth: to move funding with greater freedom

loan subrogation

The transfers of the fifth are not born with a very specific purpose (only the Inpdap multi-year direct loans are an exception, which can be disbursed only for certain needs) and fall into the category of personal loan.

This type of loan does not take into account existing loans (unless the level of debt is already out of control) and for this reason it can be used to replace them. It is possible to obtain with greater freedom even a sum greater than the initial one. It is therefore an alternative that lies in the middle of the other two.

The only real disadvantage of this method of financing is due to the fact that the other solutions are also accessible to self-employed workers, those who carry out business activities and freelancers. Instead the transfer of the fifth is accessible only to employees (both public and private, with the sole exclusion of some small sub-categories and limited cases) and to all pensioners.


Differences between the portability of mortgages and that of loans

Differences between the portability of mortgages and that of loans

As evident from the alternatives indicated up to here, unlike the mortgage, the loan substitute does not exist in any specific form. Precisely for this reason we can indicate only possible and non-structural common features. In particular:

  • ancillary expenses can and must not be eliminated (at the lender’s discretion);
  • the extinction accounts that may include costs must be requested ;
  • the repayment of the previous loan must take place in the manner requested by the lender, since there is no single and univocal procedure;
  • you must not let yourself be attracted by promotions without having made a careful comparison, especially if you rely on promotional rates to be taken;
  • in the calculation, especially in the case of transfers of the fifth, the incidence of costs related to insurance premiums must also be considered.

Once again, the request for various quotes is fundamental which, being free and without any commitment, allow you to clarify your ideas by comparing costs, features and conditions, even online.