With the decline in interest rates, the mortgage market is experiencing a phase of renewed dynamism, pushing many borrowers to consider subrogation as an effective strategy to reduce the monthly payment. This opportunity is part of a context of more favorable credit conditions, also made possible by more accommodating monetary policies.
But what are the real benefits of subrogation and how is the credit landscape changing in Italy?
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Subrogation: an opportunity to lower the installment
In recent months, fixed and variable rates have reached annual lows, respectively 2.55% And 3.68%. This has incentivized a growing number of borrowers to take advantage of the free portability of the mortgage to obtain more advantageous conditions.
In fact, subrogation allows you to transfer the mortgage from one bank to another, often to switch from a variable rate to a fixed one or to extend the duration of the repayment plan, reducing the monthly installment amount.
Online comparison tools have made this opportunity even more accessible, allowing borrowers to compare offers and choose the most suitable one.
Subrogation requests have seen a significant surge: from 22.6% in the fourth quarter of 2023 to 35.6% in the same period of 2024. This increase reflects the desire of many families to lighten the burden of monthly payments and better manage their current expenses.
At the same time, banks have loosened credit restrictions, encouraging access to credit even for traditionally less advantaged categories, such as self-employed and precarious workers.
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What is mortgage subrogation?
Mortgage subrogation, also called mortgage portability, is a financial operation that allows you to transfer your mortgage loan from one bank to another for free to obtain more advantageous economic conditions.
Introduced in Italy with the Bersani Law of 2007, subrogation allows you to modify key elements of the mortgage, such as the interest rate (for example, switching from variable to fixed or vice versa) or the duration of the loan, keeping the residual amount of the debt unchanged . This process does not involve costs for the borrower, since the costs of the investigation, appraisal and notarial deed are entirely borne by the new bank.
Subrogation is therefore an effective tool for saving on the monthly payment and better managing the family budget.
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Changes in the Credit Market
In recent years, the credit market has experienced a significant transformation, largely influenced by the monetary policies of the European Central Bank (ECB). After a period characterized by high interest rates and restrictive policy, 2024 marked a change of direction.
With three reductions in the cost of borrowing, the ECB contributed to making credit more accessible, stimulating demand for mortgages and favoring better conditions for borrowers.
The fixed rate, which has always been considered the safest choice for those who want stability in payments, has reached the lowest levels in recent years, falling to 2.55% in October 2024. Variable rates, linked to the 3-month Euribor, have also recorded a decline, with forecasts of a further decline of up to 2% by October 2025.
This scenario made it more convenient for many borrowers consider operations subrogation or take out new mortgages at favorable conditions.
Not only the lower rates, but also the internal policies of the credit institutions have contributed to greater openness towards applicants. Banks, driven by the desire to increase their market share, have simplified the preliminary investigation processes, reducing the time necessary for the approval and disbursement of mortgages. This more flexible approach has also favored historically underserved customer categories, such as self-employed workers or those with fixed-term employment contracts.
Another significant fact is theincrease in the average amount requested by borrowers: it went from 130,000 euros at the end of 2023 to 140,000 euros in 2024. This increase reflects both greater consumer confidence in their ability to repay and the need to cope with higher real estate costs, especially in large cities .
These changes in the credit market have also had a positive impact on the relationship between supply and demand. Banks have become more willing to finance property purchase and renovation projects, offering more flexible and personalized products.
In parallel, borrowers are leveraging digital tools to quickly compare available offers, making the mortgage choice process more transparent and competitive.
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Growth in demand among young people and in the south
The improvement in market conditions also had positive effects on the geographical and demographic distribution of mortgage demand.
Requests have increased in the Centre, the South and the Islands, while among the age groups, young people between 26 and 35 represent an increasingly significant share. This trend signals significant growth potential for the sector, with banks looking to expand their presence in traditionally underserved markets.
