Mutual Debtor – Mortgage Loan


What is it and how it works?

What is it and how it works?

The mortgage subrogation (or even subrogation or loan portability) allows the replacement of the previous mortgage by switching to a new bank that can agree on more favorable terms than the original credit institution; the Mutuario will have neither costs nor charges from the first bank, to which it will not even have to ask for consent to make the transition.

The subrogation can be defined as a “purpose loan” and is only granted for the residual amount of the old mortgage (updated on the stipulation date); as regards the mortgage, it remains unchanged and is updated with the new bank’s takeover. The conditions of duration and rate change radically.

The mortgage substitution can replace mortgages for the purchase of both first and second homes; it is not excluded that we can ask for the subrogation of a liquidity loan.

Before requesting a mortgage subrogation, it is necessary to evaluate the options that best meet our needs and the benefits that can be derived from this type of procedure. It is possible to evaluate the various alternatives by turning to a bank or using the comparison portals on the Internet, which often offer the most convenient solutions.

Even if, in theory, it is possible to request the subrogation mortgage several times, the banks grant this type of transaction only once, as it is the banking institutions themselves that bear the costs of the transition.

It is important to remember that the subrogation of the loan is different from the renegotiation of the loan, where it is possible to ask the bank to change the contractual conditions originally agreed with it, especially as regards the interest rate or the duration of the loan.




Bilateral surrogacy

This provides for the intervention of the new bank (‘subrogant’), the Mutual (debtor) and a subsequent unilateral act of receipt.

The bilateral subrogation is divided into two phases: the signing of the subrogation loan agreement (between the Bank and the debtor) and the stipulation of the unilateral receipt (between the Notary and the Bank).

The trilateral substitution

This provides for the intervention of the original Bank (‘surrogate’), of the new Bank and of the Mutual. With respect to the trilateral substitution, this requires longer times for the practice to take place. This type of subrogation is stipulated with a single notarial deed containing the new loan contract, the receipt of the original residual loan and the commitment not to cancel the original mortgage.


Rights and Duties of Banks

It is important to remember the duties and rights of both Credit Institutions involved in the subrogation procedure.


  • Active bank (the new bank, called ‘subrogant’): transparency and the taking charge of the costs deriving from the subrogation (taxes and fees, notary deeds, fiscal charges);
  • Passive bank (the original bank, known as ‘surrogate’): the obligation to cooperate with the active bank and to respond promptly to allow the procedure to start, allowing completion of the act within the 30 days required by law.


  • Active bank: this has the right to receive from both the surrogate bank and the mutual bank all the necessary documentation so as to start the mortgage practice;
  • Passive bank: has the right to obtain that the contractual parties operate following the principles of correctness and good faith. It does not fall within the rights of the same to receive a notice from the customer of wanting to proceed with the subrogation of the loan.