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NIBC expands originate-to-manage business with new mortgage label

On 13th of February, NIBC introduced a new mortgage label, Lot Hypotheken. The venture, for which NIBC is partnering with two new strategic Dutch investors, broadens the bank’s range of mortgage products for retail customers and so expands its originate-to-manage (OTM) business and origination of loans for its own book.

Lot Hypotheken will be offered alongside existing mortgage label NIBC Direct. Since 2016, NIBC has been building its OTM mortgages business as the low interest-rate environment boosts customer demand for mortgages with longer durations. As with NIBC Direct, part of the Lot mortgages will be kept on NIBC’s own balance sheet, which provides the necessary comfort and alignment for the institutional investors.

Lot Hypotheken is offering a 10-year interest rate of 0.99% – making it the first mortgage lender in the Netherlands to set a 10-year interest rate below 1%.

Michel Kant, member of the Executive Committee of NIBC Bank:
“We’re excited to add Lot Hypotheken to our mortgages business and to partner with two new strategic Dutch investors to secure this new OTM mandate. We can now offer retail clients a broad range of mortgage products with the full bandwidth of fixed interest periods by combining institutional investors’ demand for long maturities with NIBC’s appetite for shorter maturities. Adding this label fits our ambition to further expand our OTM franchise and attract new institutional investors, who gain the possibility to invest in long-dated Dutch mortgages without the operational hassle of running a mortgage business.”

Sustainability focus
Lot Hypotheken originates NHG (Dutch National Mortgage Guarantee) mortgages, supports sustainability, offers competitive interest rates and aims to outperform on processes and consumer experience. To stimulate retail clients to take sustainability measures, Lot offers a sustainability mortgage loan with an interest rate of 0,5%. The new label will be positioned independently of the NIBC Direct mortgages label and will operate under the AFM umbrella licence of NIBC Bank N.V. For more information on Lot Hypotheken, please see this news release.

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