Dutch challenger bank bunq has joined forces with lending platform Tulp to offer a new set of mortgages.
bunq plans to roll out the new offering in 2022. Initially, mortgages will be available in the Netherlands.
Mortgages allow fintech like bunq to lock in users for the long term and the home-lending offering is expected to generate sustainable income while giving bunq an edge over its peers.
Additionally, the partnership is aimed at challenging conventional banks’ grip on the mortgage industry.
The digital bank stated that nearly two-thirds of home loans on its balance sheet will be covered by a government-backed insurance policy.
The policy, bunq claimed, guarantees homes up to €355,000 if the customer defaults.
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bunq founder and CEO Ali Niknam said: “At bunq, we are constantly innovating and evolving to serve our users. Becoming the first digital bank in Europe to offer our users mortgages is an incredibly exciting development for everyone at bunq.”
bunq’s announcement comes shortly after it received regulatory clearance for its €193m Series A funding round.
The funding valued the completely self-funded challenger bank at €1.6bn. bunq will use the funding for expansion across Europe with a focus on Germany and France.
Tulp Group co-founder and CCO Paul Wessels said: “Tulp is excited to support bunq to become a successful new lender in the Dutch market. This partnership is a great opportunity for the further positioning of our existing Dutch lending platform.”
Founded in 2015, the lending platform is active in the Dutch residential mortgage market and in the buy to let market.