Dutch lenders losing ground in battle for new mortgage market

The largest Dutch banks' share of the mortgages has fallen to its lowest level yet, as new regulatory pressures increase, thereby allowing new competitors acting on behalf of pension funds and insurance companies to grow. For the fourth quarter of 2015, only 48% of mortgages sold came from Rabobank, ABN Amro and ING, with nearly a quarter now coming from new mortgage issuance; before the credit crisis began in 2008, these three banks controlled 75% of the mortgage market. This is part of a striking global trend as banks grapple with new regulations and the legacy of their existing loans.

The four main Dutch banks now account for less than half the Dutch mortgage market, as pension funds and insurance companies step in, according to market research group IG&H.

Banks are being squeezed out especially on mortgages of between €200,000 and €300,000, the research, quoted in the Volkskrant, shows. The big banks still control 60% of the market for large mortgages.

ING, ABN Amro and Rabobank now control 48% of the total market. Insurance company providers have taken 36%, small banks 7% and foreign mortgage providers almost 4%, IG&H said.

Before the credit crisis began in 2008, the big three banks controlled 75% of the mortgage market.