My solicitor in Spain and has spoken to 'bank of Valencia' regarding the subrogation. I think we finally have a real answer....
Thank you for the mail.
I have just spoke to the bank and they have explained to me the reason why they will give you the condition as subrogation, but the mortgage it self will not be subrogated.
The reason is that Polaris World has difficulties with payments (insolvency) and the bank has taken decision to not accept subrogation agreement of the mortgage from Polaris to the clients because of this. I am very sorry for this and it is nothing we can do as it is an decision taken by the bank. The only thing you save will be the valuation cost as the valuation has already been done and paid by Polaris.
It is up to you if you want to choose them or some other bank! Many times it is good to try with two banks to see which one gives best condition for example, but then you need to pay valuation cost for the apartment as the banks wants to do their own valuation.
Kind regards,
(Looks like I will just have to pay the fees)