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Huge rise in credit unions entering mortgage market

Huge rise in credit unions entering mortgage market

In late March 2016, only around 40 credit unions offered a mortgage. This has since soared to more than 110.


Louise McBride

July 7 2019 7:00 AM


The amount of credit unions offering mortgages has almost tripled over the past three years - and with more set to roll out home loans over the next year, an increasing number of people will have the option of getting a credit union deal.



In late March 2016, only around 40 credit unions offered a mortgage. This has since soared to more than 110.

"We expect more credit unions who have not to date offered mortgages to do so over the next 12 to 18 months," said a spokeswoman for the credit union lobby group, the Irish League of Credit Unions. "A change in Central Bank guidelines for long-term lending [by credit unions] would be a catalyst for this."

These Central Bank rules - which typically only allow a credit union to lend up to 10pc of its loan book over a period of more than 10 years - are currently being reviewed.

In 2016, credit unions explored how they could enter the mortgage market in a more meaningful way, and they have made strides into that market since.

The value of mortgages lent out by credit unions in late September 2018 stood at €171m - 50pc higher than the previous year, according to the latest figures from the Central Bank. Some large credit unions now offer mortgages of as much as €300,000, and others offer more.

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We offer clients a full estate agent service including Property and Land Sales by Auction and Private Treaty, Valuations, Property Management, Lettings and Agri-Entitlements . Also Livestock Sales and Valuations for All purposes i.e. Insurance, Probate and Clearance/Reduction Sales.
Contact us at Robert Nixon & Co for a professional and friendly service when buying and selling property in the Meath, Cavan and surrounding areas. Our office is centrally located in Kells, Co. Meath.