Fintech is set to extend its grip over the debt financing market after Jungo concludes its first crowdfunded mortgage since partial-acquisition by Aegon earlier in the year.
Housing prices are becoming increasingly unaffordable, and with the impetus provided by fintech, traditional mortgage financing is the next sector vulnerable to disruption. Crowd-mortgage lender Jungo has recently facilitated the crowdfunding of the mortgage that allowed Kim Opdam and Ivo van Kampen to move into their Leiden home.
Claiming to match ‘smart investors’ with ‘enthusiastic homebuyers’, the platform boasts a return of 2.8% annually for investors, coupled with an automatic interest rate reduction service. Jungo also adheres to the Mortgage Financing Code of Conduct, and provides further reassurance with repayments being undertaken in the event of temporary inability by the homebuyer. Already reporting hundreds of investors, Jungo co-founder Vincent van den Noort foresees the platform encouraging the homebuyers’ own network to become involved and “work together to ensure that the mortgage become even cheaper”.