Credit Unions Lower Mortgage Rates Than Banks

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Credit Unions Launch New Mortgage Product to Increase ⁢Competition

Credit unions in ireland are launching a new mortgage product developed by CU Mortgage ‌Services, aiming to provide borrowers with both certainty and ⁢the benefits of a variable rate. ⁣the product will initially be available in 30 credit unions this month, expanding to 40 more next year.

Key‌ Points:

* Increased Competition: The launch is supported by recent Central Bank decisions⁣ to increase lending limits ‌for credit unions, fostering more competition in the mortgage market.minister Robert Troy welcomes this increased competition.
* Addressing Market Dominance: Currently, AIB ​and Bank ⁢of ireland issue 90% ⁣of mortgages in ireland, indicating a lack⁤ of ‌competition. This ⁤new offering aims to challenge that dominance.
* Borrower benefits: ‍Credit unions claim the product offers repayment certainty alongside variable rate benefits, and provides more choice for borrowers,⁤ notably first-time buyers.
* ⁢ Centralized Support: CU Mortgage Services was established‌ to provide centralized support to member credit unions in offering mortgages.
* Awareness Gap: Many potential borrowers are unaware that credit unions even offer mortgages.

The total mortgage lending in Ireland is⁣ around €13 billion annually.