Mortgage transfer in Spain: switching banks (subrogacion)

Your current bank doesn't want you to know how easy it is to leave. Subrogacion means transferring your mortgage to a different bank that offers better terms. You don't cancel the loan and start fresh — the mortgage itself moves. And since Spain's 2019 mortgage law (LCCI), the costs to you are minimal. The bank acquiring you pays almost everything.

When it makes sense to switch

Switching banks is worth it when the gap between what you pay now and what's available is real. Common scenarios:

• You have a variable-rate mortgage with a high spread (euribor + 0.90% or more) and want to move to fixed or mixed.
• You signed during a high-rate period and the market now offers better terms.
• Your current bank refuses to renegotiate (novar) and you want to look elsewhere.

One critical detail that advisors repeat: you generally need at least 100,000 euros in outstanding capital for a new bank to be interested. Below that threshold, the operation doesn't generate enough business for them, and offers are poor or non-existent. As one advisor in the group puts it: "Under 15 years remaining or under 100k, most banks won't want to take on the subrogacion."

The process step by step

1. Get offers from other banks. Present your current situation (bank, rate, outstanding capital, remaining term) and ask for subrogacion terms. You can go directly or use a broker (broker hipotecario).
2. The new bank issues a binding offer (FEIN). With this document, you can approach your current bank.
3. Your current bank has a right of first refusal (derecho de tanteo). They have 15 days to match or beat the new offer. If they do and you accept, you stay (this becomes a novacion). If not, you proceed. This is the only time your bank will genuinely try to retain you.
4. The new bank handles everything. Valuation (tasacion), notary, land registry. Under the LCCI, these costs are paid by the bank acquiring you, not by you.
5. Sign at the notary. The full process typically takes 1 to 3 months.

Real costs

If your mortgage was signed after June 2019 (under the LCCI):

• Transfer commission (comision de subrogacion): maximum 0.15% during the first 3 years for switching from variable to fixed, 0% after that. Many recent mortgages already have 0% subrogacion fees.
• Origination costs: paid by the new bank.
• Registry cancellation: doesn't apply in a subrogacion, because the mortgage transfers rather than closing. This saves you roughly 1,000 euros compared to cancelling and opening new.

For mortgages signed before 2019, the commission depends on your original contract. Check your escritura (deed).

Subrogacion vs cancel and reopen

Subrogacion saves you the registry cancellation fee (around 1,000 euros) and, for post-LCCI mortgages, the origination costs. However, it has limitations: you cannot increase the loan amount, and you cannot add or remove borrowers. If you need either of those, you'll have to cancel and open a new mortgage.

A nuance that confuses people: if your subrogacion commission is high but your cancellation commission is 0%, you can technically cancel with your current bank and open a new mortgage elsewhere. It's not a subrogacion, but the result is similar — though you'll pay origination and registry costs.

The mixed-rate strategy

A strategy banks would prefer you didn't know: sign a mixed-rate mortgage (hipoteca mixta) with a good fixed rate for the first 3-5 years. When you enter the variable portion, switch banks via subrogacion to get a new mixed or fixed rate. Since post-LCCI mortgages cannot charge you any commission during the variable period, leaving is free. Multiple users describe this as their plan from day one: "My intention is to update it when better conditions appear."

Which banks accept transfers

The most active banks for subrogacion vary over time, but users frequently mention BBVA, CaixaBank, Sabadell, and EVO Banco. Some like Ibercaja are reluctant to accept incoming transfers but aggressive with new originations. Online banks (Openbank, MyInvestor) also handle subrogaciones, though some have minimum amounts or term restrictions.