Popular will also support the sale of properties from Sareb with 1000 million Euros.

Banco Popular joins the list of institutions that will support the sale of properties in the hands of the “bad bank”, Sareb, and will launch a specific mortgage which will have the availability of up to 1000 million Euros.

The bank presided over by Angel Ron becomes  therefore the fourth institution to help Sareb with the financing for the acquisition of homes and trade premises owned by the asset management company, after Santander, CaixaBank and Sabadell. These three institutions had already signed similar agreements to the one signed today between Popular and Sareb, for the same amount and with a deadline on the 31st December 2014, even though there is always a possibility for a renovation.

The next institution to join in could be BBVA which, according to financial sources consulted by Efe, is also thinking of supporting the acquisition of properties from Sareb with a similar agreement. With Popular´s mortgage it will be possible to finance up to 80% of the value of principal residences at a maximum deadline of 30 years and with an interest rate of Euribor plus 3,50 percentage points, although it can be reduced to 2,50 depending on the bonus applied.

When it comes to secondary residences, Popular offers an interest rate of Euribor plus 3,75 percentage points to finance up to 60% of the value of the property in 30 years, although if the buyer does not have its residence in Spain, the maximum deadline is 20 years and the mortgage reaches Euribor plus 4,25%.

The portfolio of properties from Sareb is made of around 55.700 properties and another 30.000 other assets, such as garage spaces and storage rooms. It also owns more than 185.000 square meters of office space, thirty hotels and 150.000 square meters of rental spaces in shopping malls.

Source: Expansión