Swedish mortgage challenger surpasses SEK 20bn in stock
Swedish mortgage challenger Hypoteket has seen record demand for its "already negotiated" mortgages during, what can best be describes as, a wild year for interest rates. In november two milestones were reached - SEK 25bn i total lending, where of SEK 20bn in current AUM.
2022 has been a turbulent year in many ways, with rising inflation and interest rates globally, but for Hypoteket, one of the challengers in the Swedish mortgage market, things have turned out rather well.
Likely helped by high attention to personal finance matters, such as soaring electricity bills and rising debt servicing costs, Hypoteket has managed to draw a larger than usual crowd to its transparent and “already negotiated” mortgage offering. Business volumes have increased as a result as lendable funds have also been ample throughout the year. The latter thanks to, among other things, recent investment commitments from prominent Swedish pension managers such as Folksam and AP4.
“We set out an ambitious target for the year, to lend around SEK 1bn per month on average” says Carl Johan Nordquist, CEO of Hypoteket Bolån. “There is still some time to go until year end, but the target is certainly within reach”.
The Swedish Mortgage market is large, around SEK 4 000 bn (≈ EUR 370 bn) in total, which means Hypoteket still has a modest 0,5% overall market share. The share of the “market float”, i.e. mortgages that get transferred every year, is however significantly greater, meaning Hypoteket and similar challengers are still likely to have had a notable impact on market dynamics.
“I tend to say that we are still small as a mortgage company, but fairly large for an AIF manager” comments Johan Hasselblad, Head of Funding at Hypoteket. “I think quite a few money managers out there would be rather envious of our AUM growth over the last couple of years. However, we certainly first and foremost see ourselves as a mortgage lender and as such we have only just scratched the surface, really”.
In order to continue the growth journey Hypoteket is still keen to meet new potential debt investors, securing funding for the years ahead. Customer growth is not to be taken for granted either but so far the partnership with the majority owner, Nordic media powerhouse Schibsted, has proven very successful in terms of market reach.
It is however not about growth at all cost. “It has always been a top priority for us to grow with quality, in terms of the best credit quality possible in the lending portfolio. If anything, our focus on this is perhaps higher than ever as we prepare for a new economic landscape in 2023” says Carl-Johan Nordquist.
Hypoteket är en bolånegivare som sedan 2018 har givit ut bolån. Finansieringen möjliggörs genom bolånefonder och institutionella investerare.
Hypoteket grundades av entreprenörerna Carl Johan Nordquist som är VD i Hypotekets bolåneverksamhet och Dag Wardaeus som är VD i Hypotekets fondverksamhet.
