We can call the reunification of debts as a process through which we can merge all our debts (mortgages, personal loans of all kinds, credit cards, etc.) into a single credit, with the aim of improving the conditions of our loans as well as Tangibly reduce monthly payments or fees to be paid. The result of this operation will be to obtain a new mortgage, which would constitute not only all the aforementioned loans but also the remaining amount of the old mortgage that was to be subscribed. Each particular case has special characteristics, however, as a general rule, the decrease in monthly installments entails the extension of the life of the loan and the increase in final interest payable. This reduced single fee allows creditors to live more comfortably, with greater liquidity for personal expenses. It is a service equally indicated, in many cases, for defaulters (already inscribed in the well-known lists) and people with embargoes.
Elements to consider before reunifying our debts
- Who can request a debt reunification? In most cases, banks require the customer, at a minimum, to be in possession of a mortgage loan. However, although it is not usual, it is also possible to collect all debts in a single personal loan, usually as long as the debts are not too high and the economic situation of the applicant stable.
- What documents will we have to provide?
- Housing deeds.
- ID in force.
- Employment contract and last three payrolls.
- Documents of the remaining personal credits or / and credit card contract.
- Last income statement.
What commissions will we have to pay?
We summarize some of the possible commissions to be paid. Generally, these costs are included in the amount granted with the new mortgage, therefore, the client will not have to pay ipso facto a high amount of commissions.
- Commissions for cancellation and / or opening of the mortgage. The modus operandi regarding the reunification of debts entails the cancellation of all existing loans and the creation of a new loan. Therefore, for banking purposes, it is understood as the cancellation and new opening of a mortgage loan.
- Notary fees, agency, property registration and home appraisal.
- Taxes as appropriate.
- Negotiation agency expense if any.
Where do we request the reunification of debts?
There are two options, either through a banking entity, or through a negotiation agency.
- With a Bank: this entity can be either our usual bank, in which we have requested the credits to reunify, or it can be another bank, to which we can transfer our current loans. Depending on the mortgage conditions in any case, this may be the cheapest option as long as the bank accepts our reunification request: creating a new mortgage only with personal loans or extending the existing mortgage to include personal loans. In any case, the opening and / or cancellation services should not be paid, among other fees. We must also take into account that, by transferring our clientele to another bank, we can achieve, in many cases, better conditions and interests than those offered by our traditional bank.
- With a bargaining agency: these are companies that handle all the paperwork between the bank and its clients. Its objective is none other than the achievement of the best possible conditions for its client, however they will of course require commissions to be agreed in any case before starting the procedures. These agencies must be regulated and operate within the Spanish legal framework.