The NIBC bank said on Tuesday it is entering the Dutch mortgage market with immediate effect, Nos television reports.

The market is currently dominated by the big three banks: Rabobank, ABN Amro and ING.

‘We have taken note of the demand for new players in the mortgage market,’ a spokesman told the Nos. ‘More competition is never a bad thing.’

Interest rates

For the time being the bank will only sell annuity mortgages, with a slightly lower interest rate than that offered by the three big banks.

The aim is to build the business to 5% of the market over a number of years.

NIBC, founded in 1945 to help finance post-war reconstruction, began offering savings accounts in 2008 and has €8.2bn in holdings.