Credit Unions in Ireland See 71% Surge in Mortgage Lending

Discover how credit unions in Ireland are leading the way in mortgage lending, offering competitive rates and savings for homebuyers.

Credit unions in Ireland have experienced a significant surge in mortgage lending over the past year, with member-owned lenders reporting a 71% increase in the value of home loans to over €600 million across the sector. The Irish League of Credit Unions (ILCU) has stated that credit unions are on track to reach mortgage lending of €1 billion within the next two years. A recent survey has revealed that credit unions offer the most competitive rates for those seeking a mortgage, with repayments on a typical mortgage from a credit union being approximately €720 per year less expensive than those from traditional banks or non-bank lenders.

Currently, around 100 credit unions are offering mortgages, with the lowest interest rates for first-time buyers, switchers, and movers averaging at 3.72%. The demand for credit union mortgages continues to grow, driven by competitive rates and personalized service with quick turnaround times. The recent passing of the Credit Union (Amendment) Act 2023 will further enhance credit unions' ability to expand their mortgage offerings nationwide, allowing every credit union in the country to provide mortgage services.

The ILCU, representing over 90% of active credit unions in Ireland, has released financial results for the January to March quarter, showing a 13.6% increase in overall lending, primarily in personal loans. With more than 90,400 new loans issued in the quarter, credit unions are providing finance to 3.25 million members across the country, holding a 50% market share in the personal unsecured lending market. The league-affiliated credit unions' assets stand at €18.1 billion, with savings increasing to €15.2 billion.

The robust financial results underscore the continued growth and future potential of credit unions in Ireland, offering members a wide range of opportunities. The sector eagerly awaits the Central Bank's review of the credit union lending framework, with anticipated changes expected to facilitate increased mortgage and business lending.