Online bank Bunq moves into mortgage lending with initial €100m worth of loans

Homebuyers can borrow up to 80% of the mortgage value. Photo:

Online bank Bunq has moved into the mortgage market after going into partnership with Venn Hypotheken, a subsidiary of insurance giant Nationale-Nederlanden.

Bunq is the first European ‘neobank’ to expand into mortgage lending, having launched its business with €100 million worth of property transactions selected by Venn.

Two-thirds of the loans are covered by the government’s NHG scheme, which guarantees the mortgage on properties worth up to €310,000 against events such death, divorce or unemployment. Home buyers can borrow a maximum of 80% of the property’s value.

The bank’s founder, Ali Niknam, said Bunq needed to diversify its portfolio from bonds, which currently make up 80% of its investments, but it would continue its strategy of prudent investing.

‘What our account holders sometimes conflicts with what I want,’ Niknam told Het Financieele Dagblad. ‘Traditional banks are intrinsically motivated to take big risks with other people’s money. I’ve never wanted that.’


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