Three Dutch pension funds are to start offering mortgages, investing a combined €2bn in the housing market.

Engineering pension fund PMT, the Hoogovens fund and the fund for the printing industry have set up a special company named Munt Hypotheken to manage their mortgage investments.

‘This is the first time pension funds invest directly in mortgages without a bank as an intermediary,’ said director Jeroen Looman in a statement.

A number of leading Dutch economists suggested several years ago that pension funds invest directly in mortgages. The country’s biggest pension fund – civil service giant ABP, is not taking part. ‘We do not consider this a core activity for a pension fund,’ a spokesman told news agency ANP.