In order to change the conditions initially signed, it becomes imperative to pursue what is known in the financial sector as a “novation”. To do this, it is necessary to reach a new agreement between the client and the bank and subsequently generate a new public document: a revised mortgage deed and an updated entry within the property registry.
Common scenarios for this are:
- Necessity to fund new part projects: this situation frequently arises when seeking an augmentation in the mortgage principal, as mortgage loans typically proffer more favourable terms compared to alternatives such as personal loans.
- Shifts in personal circumstances and/or risk profile.