By Aisling Finn on Tuesday 22 December 2020
Bunq only started offering its Dutch customers mortgages back in July.
Dutch challenger bank bunq has grown its mortgage portfolio fourfold in less than six months.
The digital bank first announced that it would be offering its customers mortgages, in partnership with third party broker, asset manager NN IP, back in July of this year.
It seems the move to enter mortgages has paid off, with bunq seeing its portfolio expand by a massive 400 per cent since it first opened applications.
“We listened and started investing in mortgages. Today I’m very proud to announce that we’re executing at full bunq speed by growing over 400%!”
Currently, Bunq’s mortgages are only available to its Dutch customers, and two-thirds of Bunq’s home loans will be covered by the Dutch government’s insurance scheme, which guarantees homes up to €310,000 in the event the borrower defaults.
Just like with other investment opportunities on Bunq, users of the challenger bank can choose to invest in the personal mortgages if they want, using the Freedom of Choice function.
Earlier this year, speaking at the AltFi Festival of Finance, Niknam cemented his view on the importance of having an office, even in light of Covid-19: "It is somewhere where we get together, it’s somewhere where we share dinner, it’s somewhere where we share lunch, it’s somewhere where we share drinks, it’s where creativity flows.”