The Credit Union Mortgage Difference

House 5 min read

09 Jul 2019

'I've asked people in the banks about mortgages, and they'll turn around and say no.'  Tralee restaurant owner Kevin had not had the best experience with the banks when he approached Cara Credit Union for a mortgage during the RTE One television series, The Borrowers. The show follows real people who borrow from credit unions for every reason imaginable.

Kevin’s experience with a credit union mortgage application was much more positive. ‘I've never made it this far. Even sitting down in front of another human being in an office with a computer that's willing to put my details onto the computer, I've never got that far before' Kevin told viewers after his initial meeting with loans officer Maurice Donoghue.

At the end of the episode, Kevin’s mortgage application was approved and his relief and joy was palpable. ‘I have a little girl I have to go and tell this to, it’s going to make her day’ said Kevin, speaking about his 10 year old daughter.

How does a credit union mortgage work?

The Irish League of Credit Unions (ILCU) worked with a number of credit unions to design and build a credit union mortgage ‘shared service’ so that participating credit unions can have the support and assurance they need to be successful in residential mortgage lending.
Each participating credit union sets its own mortgage interest rate at local level, and will also make the final lending/approval decision. The ILCU will coordinate and provide centralised, administrative support through the shared service, or Mortgage Hub. Credit union mortgages are provided for residential purchases.

A credit union mortgage is unique in many ways;

  • Every credit union is owned by its members, the people who save with it and borrow from it. A mortgage from a credit union is funded by the savings of other people within your community
  • All lending decisions are taken at local level, not in some remote head office.
  • Credit unions excel in personal service which they provide. For a record breaking four years in a row, credit unions have been voted the best organisation for customer experience in the CXi Ireland report

You can read in more detail about the unique benefits of credit union loan here. For more detailed information on credit union mortgages see here.
So whether you are thinking about building or buying your first home, or switching your mortgage, talk to your local credit union today and find out how they can assist you.