Nordax Bank acquires Svensk Hypotekspension AB
Nordax Bank AB has signed an agreement to acquire Svensk Hypotekspension AB (SHP), a specialist company focusing on equity release mortgages. Through the acquisition of SHP Nordax strengthens its position as a leading specialist bank for private individuals in Northern Europe and a challenger within the mortgage market.
- SHP is a very well-run company with a unique position within a very interesting segment of the mortgage market. Through the equity release mortgage SHP offers Swedish retirees with low loan-to-values on their homes the possibility to take up a mortgage and avoid selling their home. Nordax and SHP are both challengers in a banking market where an increasing number of creditworthy clients do not fit the increasingly standardized templates and credit assesments of major banks. Recently we launched our mortgage offer targeted towards an another fast growing customer group that does not fit into the major banks’ templates – individuals with other employment forms than a permanent full-time position, e.g self-employed persons. Through the acquisition we strengthen our expertise within the mortgage market even further, says Jacob Lundblad, CEO at Nordax.
SHP was founded 2004, and today the company has 13 employees at its offices in Stockholm, Gothenburg and Malmö. At year-end 2017, SHP’s lending totalled 3.5 Bn SEK with more than 5,000 active clients (households).
- Senior citizens are a big and growing group, typically with substantial capital tied-up in their homes. They often fail to live up to the requirements of traditional banks in order to obtain an ordinary mortgage and can therefore be forced to move from their homes in order to manage unexpected expenses or improve their pension income. We recognised the need early and over the years we have helped more than 11,000 seniors to achieve a better everyday financial situation. As part of Nordax we can make it possible for more Swedish retirees with large net wealth tied up in their homes to free up capital without needing to sell their home. Our shared core values and a common view on how we can develop our services to a growing customer group using Nordax expertise in credit underwriting and targeted marketing creates a strong a solid platform for future growth, says Lennart Grabe, CEO and founder of SHP.
The acquisition is subject to regulatory approvals.
For further information, please contact:
Andreas Frid, Head of Communication, tel: +46 705 29 08 00 or firstname.lastname@example.org
Nordax is a leading specialist bank in Northern Europe. Today we offer service to more than 150,000 customers in Sweden, Norway, Finland and Germany. We are a specialist bank which, through responsible lending, helps people to make informed decision for a life they can afford. We are specialised in a few products, like mortgages, private loans and savings accounts, in which we are experts. Nordax employs about 200 people, all working in its office in Stockholm. The underwriting process is Nordax’s core competency; it is thorough, sound and data driven. Nordax’s customers are financially stable individuals. As of March 31, 2018 lending to the general public amounted to SEK 14.1 billion and deposits amounted to SEK 7.7 billion. Read more about Nordax mortgage offer on www.nordax.se/lana/bolan.
About Svensk Hypotekspension
Svensk Hypotekspension is a Swedish mortgage credit institution supervised by the Swedish Financial Supervisory Authority. Starting in 2005, the company provides Hypotekspension®, an equity release mortgage which allows elderly people (60+) to get a safe and predictable mortgage in order to free up capital tied in their homes. The mortgage is life-long, non-amortising and with interest rolled-up. Hypotekspension® poses no risk to the borrower’s personal finance as the customers are offered a so-called no-negative-equity guarantee. As per 31 December 2017, Svensk Hypotekspension had approximately 5,000 active customers (households) and a total loan book of approximately 3.5 billion SEK. For more information about Svensk Hypotekspension, please refer to www.hypotekspension.se