Credit Unions Lower Mortgage Rates Than Banks
- 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...
- * 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...
- The total mortgage lending in Ireland is around €13 billion annually.
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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.