Tuesday 09 August 2022

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

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

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.’


Thank you for donating to DutchNews.nl

The DutchNews.nl team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments.

DutchNews.nl has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.

If you have not yet made a donation, but would like to, you can do so via Ideal, credit card or Paypal.