Credit Unions Will Soon Be Able To Offer Mortgages That Rival Banks
Credit Unions will soon be able to offer mortgages that rival what the banks can give.
New legislation, to be introduced next month, will allow community lenders greater capacity to give loans for homeowners and businesses.
Currently, Credit Unions can lend 7 and a half per cent of their total assets – but the new proposals would see that figure double to 15 per cent.
Junior Finance Minister, Jennifer Carroll MacNeill, says it’s a welcome development:
“People have been saving with the credit unions. They know their members, the credit unions can offer a flexibility that the banks don’t offer. Sometimes it feels with the banks, unless you’re the perfect candidate, it’s computer says no. With the credit unions, they understand their members, there’s a better connection. They’re also much more accessible because the credit union movement has retained a physical presence in every town in Ireland”.