What happens with the Mortgage?

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In this purchase, the shareholders were the first to be harmed, and then the clients who had their money in the acquired bank.

The purchase and sale of Banco Popular raises several questions: what happens to the mortgages that Popular had? Or what happens to the floor clause? And the mortgage expenses?

As regards mortgages, all clients will still have to make payments. The debt will be owed to the new entity (Banco Santander) under the same conditions, since it is a closed contract signed before a notary. The obligation switch off number list to pay does not disappear when a bank merges with another.

There has simply been a change of creditor. The obligations and rights of both parties remain the same. Everything remains as if nothing had happened.

Banco Popular's floor clause
The floor clause of the mortgage can be claimed against Banco Popular, as well as mortgage expenses. By acquiring Banco Popular, Santander assumes the debts it had and is responsible for both current and future claims.

«Santander will be responsible for Banco Popular's floor clauses.»


What if the floor clause has already been claimed? In the event that the floor clause has already been claimed from Popular and there is a final judgment, but the money has not yet been returned, the absorption by Santander does not create any problem. Any liability will be assumed by Banco Santander.

If you do not voluntarily accept the judgment, it can be enforced against Banco Santander. There is no risk of collection.

Claims for floor clauses or mortgage expenses, or both, will be directed against Banco Santander. It is now responsible for dealing with such claims . If such a claim is not dealt with through extrajudicial means, it may be taken to court.