Dutch Digital Bank Bunq Enters the Mortgage Market

Bunq has become one of the first European digital banks to enter the mortgage market with an announcement that they plan to start lending €100m in their native Holland; this will not be a direct to consumer strategy, instead Bunq will work with brokers, although they did say they may offer mortgages directly at some point; the digital bank has €433m in assets primarily held in European Central Bank bonds and will be diverting around 25% of these deposits into a real estate fund; the expected annual return on Bunq’s mortgage fund is 0.7% as they opt for low-risk, low-interest mortgages; what’s more, the Dutch government has protections in place that will protect two-thirds of Bunq’s home loan portfolio in case of default. Sifted.