Spain's BBVA aims to grab mortgages from rivals

MADRID, Nov 4 (Reuters) - Spanish bank BBVA (BBVA.MC) aims to capture 12,000 mortages from its competitors over the next year as part of its domestic strategy, it said on Tuesday.

Spain's second largest bank, which has largely escaped the liquidity problems faced by financial institutions around the world and at home, will offer clients who switch their mortgage debt to BBVA 200 euros ($255) a month for the first year.

The mortgage must be for at least 120,000 euros, must remain with the bank for a period of at least 15 years and must be paid on time each month, the bank's managing director for Spain and Portugal Juan Asua said on presenting the plan.

BBVA said last week that non-performing loans ratio rose to 1.54 percent at the end of September, below the sector average in August of 1.99 percent. The bank expects to end this year with a bad debt ratio of less than 2 percent.

The plan comes a day after the government said it will allow unemployed home owners to delay making half their mortgage payments for two years to cushion the impact of rising joblessness and economic slowdown.

Spaniards out of work rose to a 12-year high in October as the global credit crunch and stagnation of the property sector brought the country to the brink of recession.

BBVA and Spain's largest bank, Santander (SAN.MC) have remained well capitalised during the global financial crisis due to geographical diversification and strict oversight by the Bank of Spain. (Reporting by Jesus Aguado; Writing by Paul Day; Editing by Jason Neely)