Government Agency mortgage subrogation regulation for public employees and pensioners
Longed for by many public employees and pensioners for their convenience, Social Institute ex Government Agency mortgages are credit lines granted not only for the purpose of purchasing a first home, but also for the subrogation of the current mortgage. In this case we speak of a mortgage subrogation, which is granted following the provisions of the Government Agency mortgage subrogation regulation.
Social Institute has in fact drawn up a regulation for the granting of ex Government Agency loans, which indicates conditions, requirements and methods for granting credit. Cases relating to the subrogation of the mortgage also fall within the regulation.
It is the operation by which the public employee or pensioner who has a mortgage with a bank or financial institution transfers the loan to Social Institute. In this way, it obtains the conditions applied by the social security institution, without having to bear any costs. The portability of the mortgage is in fact free by law.
Surrogate mortgage rate and conditions
But what are the conditions of subrogation mortgage Government Agency regulation? The Government Agency Mortgage Regulation establishes the granting of mortgages with a duration of 10, 15, 20, 25 or 30 years. The interest rate is fixed or variable. By subscribing to a variable rate mortgage, the beneficiary obtains a Tan equal to the 3-month Euribor increased by 200 basis points, with fixed rate mortgages instead there is a Tan defined with the Loan to Value method.
The following table indicates the values applied at the rate of fixed interest loans.
Recall that the mortgage subrogation does not allow you to increase the mortgage amount. As a result, the beneficiary of the loan does not get more liquidity. Instead, all the repayment conditions are changed, which will comply with the provisions of the Social Institute Mortgage Regulations.
The subrogation application must be submitted in the same way as for Government Agency first home mortgages. All the details in our guide on Social Institute ex Government Agency mortgages updated to 2020.