It basically consists of the grouping of different loans into a single loan, usually within the home mortgage, which allows reducing the monthly installment of the global loan.
This generates great benefits to financial and banking entities, which is why this type of product has been given greater publicity.
Reunification of loans
There are many entities that offer them and it is usually articulated based on the existence of a mortgage loan that coexists with other types of personal loans and other forms of credit: credit cards, deferred payments, shopping cards.
It is convenient to conduct a good economic study of the personal financial situation before thinking about refinancing. An interesting alternative is to negotiate with the bank with which you already have a mortgage loan, reducing the fees, perhaps extending the outstanding terms. It is always advisable before opting for a refinancing to ask and have a written record of all the expenses, commissions, payments and taxes that a refinancing would accrue.
Attention: Beware of debt reunification services
Economy Credits “Now, if you have a mortgage, you can unify your credits into one and save more than half of what you now pay. So you can take the opportunity to carry out the reform you have in mind, buy the furniture, change the car or, why not, build a swimming pool ”.
This is one more announcement of those who advertise the service of reunification of all debts in a single loan, an increasingly used practice.
The greater popularity of these services has led the Bank of Spain to recommend to users that before undertaking this operation they carefully look at all the details and not only at the interest rate they will have to pay.
This operation, lately very publicized by non-bank companies but that have been offering traditional banks for years, allows to unite in a single credit from the mortgage fee to the debt of a card, going through the car loan or some other personal loan.
To achieve this, the existing mortgage is usually extended or a new one is opened, with what happens to have only one installment, which is usually lower than what was previously paid for all debts. In exchange, the period to be paid is extended.
Given the proliferation of advertisements on this practice
The Bank of Spain has asked users in its Banking Customer Portal, that when analyzing this operation do not look “only the difference in interest rates between old and new loans, but also the term during which it is going to be paid and the total expenses of the operation ”.
The supervisor remembers that these operations have processing and formalization costs; the credits that are canceled usually apply commissions or penalties for prepayment; Modifications in mortgages carry notary fees, registration and taxes, and the opening of a new one entails other commissions and disbursements.
In addition, if you go to a non-bank company, which are the ones that are advertising the most in recent months, the intermediation service will have a cost that will normally be borne by the customer.
In view of all the expenses that the operation may entail, the Bank of Spain insists that “it is convenient to request detailed information on the costs that the requested operation would entail”.