October 28, 2020

Kup

News Updates Everyday

Bunq enters the mortgage market | Financial

Bunq enters the mortgage market | Financial

Bunq is expanding its service one step further. At the beginning of last year, the Internet bank began offering savings accounts. Bunq savers receive one of the high interest rates in the Netherlands with 0.27% through an alliance with insurer ASR. Bunq has previously launched favorable currency transfers through a partnership with TransferWise.

For now, no direct Bunq mortgage can be iissed. The mortgages are taken out through Venn, a former newcomer to the Dutch mortgage market, which was acquired last year by NN’s investment division. Venn will also not sell Bunq mortgages, but will transfer portfolios of Dutch mortgages to Bunq. The first EUR 100 million in real estate transactions are now on the young bank’s balance sheet.

Bunq requires that two-thirds of Venn mortgages are covered by an nhg guarantee and therefore have a maximum size of 310,000 euros. To take less risk, customers need to bring their own money. The maximum mortgage amount that Bunq takes out is 80 percent of the residential value.

Bunq is the first European banking challenge to offer mortgages. Launched in November 2015, the Internet bank is growing rapidly, but is not yet publishing customer numbers. Last year, customers saved more than 433 million euros at Bunq more than twice as much money as a year earlier. With a total of 30 countries, Bunq is the first Pan-European bank for consumers and SMEs from the Netherlands.