Best Credit Union Mortgages in Ireland
Credit union is a financial co-operative formed by a group of people with a common purpose based on the community they live, their professional occupation or their employer. Through a credit union, these members accumulate their savings together, create sources of credit at a fair rate of interest for their mutual benefit of members and use and control members savings for their mutual benefit. Revenue are returned to members through dividends or improved services to members.
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Here are some of the credit unions in Ireland with the best mortgage rates for their members. Credit unions can be local or national. We will also discuss the pros and cons of credit union mortgages and how they compare with banks mortgages.
>> More: Best Mortgage Rates in Ireland
Best Credit Union Fixed Rate Mortgages
3-year Fixed Rate Mortgages
| Credit Union | LTV | Interest Rate | APRC | Max Loan |
|---|---|---|---|---|
|
Carlow, Kilkenny, Laois & Tipperary |
90% - First time buyers 90% - Existing home owners |
3.15% |
3.49% |
€350,000 |
|
Connect Credit Union Louth |
90% - First time buyers 80% - Existing home owners |
3.82% |
3.82% |
€500,000 |
|
First South Credit Union Cork |
90% - First time buyers 90% - Existing home owners |
3.90% |
3.98% |
€400,000 |
|
Member First Credit Union Dublin |
90% - First time buyers 80% - Existing home owners |
4.50% |
4.60% |
€500,000 |
5-year Fixed Rate Mortgages
| Credit Union | LTV | Interest Rate | APRC | Max Loan |
|---|---|---|---|---|
|
St Canice 's Credit Union |
90% - First time buyers 90% - Existing home owners |
3.45% |
3.54% |
€350,000 |
|
First South Credit Union Cork |
90% - First time buyers 90% - Existing home owners |
3.90% |
3.98% |
€400,000 |
|
Member First Credit Union Dublin |
90% - First time buyers 80% - Existing home owners |
4.20% |
4.30% |
€500,000 |
|
Capital Credit Union Dublin |
90% - First time buyers 80% - Existing home owners |
4.50% |
4.11% |
€500,000 |
|
St. Francis Credit Union Limerick |
90% - First time buyer 80% - Existing home owners |
5.00% |
5.12% |
€250,000 |
Best Credit Union Variable Rate Mortgages (3.50% and Less)
| Credit Union | Loan to Value | Interest Rate | APRC | Max Loan |
|---|---|---|---|---|
|
New Ross Credit Union Wexford
|
≤55%
|
2.75% |
2.79% |
€350,000 |
|
Youghal Credit Union Cork
|
90% |
2.90% |
2.94% |
€300,000 |
|
Ballincollig Credit Union Cork
|
90% - FTB 80% - Non FTB |
3.25%
|
3.30%
|
€300,000 |
|
New Ross Credit Union Wexford
|
55% - 90% |
3.25%
|
3.30% |
€350,000 |
|
First South Credit Union Cork
|
90% |
3.25%
|
3.30%
|
€400,000 |
|
St. Canice's Kilkenny Credit Union
|
90% |
3.50%
|
3.56%
|
€350,000 |
|
Public Service Credit Union Dublin
|
90% - FTB 80% - Non FTB |
3.50%
|
3.56%
|
€350,000 |
|
People First Credit Union Kildare |
90% |
3.50%
|
3.56%
|
€350,000 |
Best Credit Union Green Rate Mortgages
3-year Fixed Rate Mortgages
| Credit Union | Loan to Value | Interest Rate | APRC | Max Loan |
|---|---|---|---|---|
|
Connect Credit Union Louth |
90% - First Time Buyer 80% - Non-First Time Buyer |
2.99% |
2.99% |
€500,000 |
5-year Fixed Rate Mortgages
| Credit Union | Loan to Value | Interest Rate | APRC | Max Loan |
|---|---|---|---|---|
|
Capital Credit Union Dublin |
90% |
3.50% |
3.70% |
€400,000 |
Variable Rate Mortgages
| Credit Union | Loan to Value | Interest Rate | APRC | Max Loan |
|---|---|---|---|---|
|
Palmerstown Credit Union Dublin |
90% |
3.90% |
3.97% |
€250,000 |
Top Credit Union Mortgage Lenders
What we like : Mortgage offer is available in Kilkenny, Laois, Tipperary and Carlow counties. This credit union offers the lowest fixed rate mortgages to both first time buyers and non first time buyers with a high a loan to value of 90%.
Pros
- In addition to mortgages, the credit union offers greener home loans for home energy efficiency improvements. They also over green rate loans for other purposes including home extension.
- Mortgage fixed interests rates for 3 and 5 years are low and the variable rates are also lower than most banks
- No arrangement fees
Cons
- They have a backlog of existing mortgage applications but are yet to start accepting new applications in 2024, expect some delays
- Does not have a mortgage calculator on website to gauge rates and costs of mortgage.
- Only available in Kilkenny, Laois, Tipperary and Carlow.
What we like : You get a dedicated mortgage expert to help you through from application to drawdown.
Pros
- They offer both a standard mortgage rates and low green mortgage rate.
- They provide successful mortgage clients with a free mortgage protection insurance
- Regardless, their interest rates are fixed for 3 years and it is included in the offer letter.
- In addition to first time buyers, non-first-time buyers like switchers, home movers can borrow. Also if you are looking for equity release on homes for home improvements and consolidation of an existing home improvement loan, you can also apply for loan.
Cons
- Not open to investment or buy to let purchasers.
- No mortgage calculator
- You must join the credit union before you can apply for the mortgage.
What we like : Member and community focused credit union business model as the interest rates you pay go back into the community
Pros
- Low and competitive 3 and 5 year fixed rate mortgages
- Great customer service
- No hidden charges
- Mortgage affordability calculator available to work out estimates
Cons
- You need to get your own Mortgage protection and Life insurance cover.
- Don’t offer green mortgage loans
- You need to dial in to kick start your mortgage application.
What we like : You can join the credit union if you live, work or study within the area.
Pros
- Borrow up to €500,000
- Mortgage calculator and detailed checklist available of the website to get you started on the process.
- Offers both a 3 year and 5 year fixed rate interest rate.
Cons
- No green mortgages available
- Not available to investors and buy to let purchasers.
What we like : Apply online and a staff member will be in touch with you and guide you through the application.
Pros
- Provides green mortgages, variable mortgage rates and 5-year fixed mortgage rates with competitive rates.
- Mortgage application can be made and submitted online.
- Use the mortgage affordability calculator to kick start the mortgage application.
Cons
- 3-year fixed mortgage rate not available
- Not available to investors.
What we like : Home to 36,000 community members
Pros
- Offers other loans including home renovation loans.
- Free mortgage protection insurance.
Cons
- Maximum loan €250,000 only
- They have the option to increase interest rate to a maximum of 6.25% (6.43% APR)
- Reduced maximum loan to income of 3.5 compared to other lenders.
What we like : Open to first time buyers, mortgage switchers and house renovations
Pros
- Offers a range of mortgage products including green rate mortgages
- Mortgages available to purchase county council house purchase
- Get lower rates with loan to value less than 50%
Cons
- Not open to investors or buy to let
- No mortgage calculators to compare cost of loans using the varied interest rates
- High interest rates if you have a loan to value of more than 50%
How do Credit Unions work?
In Ireland, Credit unions have been significant in combating financial exclusion in Ireland, liberating individuals from the grip of payday sharks and encouraging a savings habit. They provide an alternative to banks and payday loans for those in need of access to credit. The focus of credit unions is responsible lending to members facing financial difficulties.
Credit unions are member-owned and member-run and led by a council of elected volunteer members who make up the board of directors. They have paid professionals managing the day to day business and technical side of the union. Members are usually local, or belong to a common profession.
Credit union members make an saving contributions which creates a pool of money and this accumulation of wealth is made available and distributed in the form of loans to members when they have a need. So one members money becomes another members loans. Interest charged on these loans to members generates an income for the credit union. Any additional income left after loans to members are used to improve services to members such as low fees, better rates on loans and higher rates on savings. Excess funds are re-invested to return a further income and dividends to the credit union members. From this income, the credit union pays any operational expenses to manage the day to day business.
Credit Union vs Bank Mortgage: Similarities
For all their distinctive features, credit unions are first and foremost financial institutions, which primarily accept deposits or shares and make loans. In this regard they are share similarities to banks in the following ways:
Mortgage offering: Some Irish credit unions, authorised by the Central Bank of Ireland can now offer mortgages to their members. Just as banks, they offer fixed rate mortgages, variable rate mortgages and green rate mortgages.
Mortgage application process: Just like banks, credit unions accept mortgage applications online , in person or over the phone.
Range of financial products: Credit unions just like banks can also be a one-stop finance shop for its members. They offer savings account, current account and variety of personal loans.
>> Read More: Best Personal Loans
Credit Union vs Bank Mortgage: Differences
While on the surface, credit union and banks appear similar, a key differentiating characteristic of credit unions is concern for community and social responsibility. Here are some of the difference between banks and credit union:
Non Profit: Unlike banks that are established to make a profit for shareholders, credit union are non-profit mutual association to provide surplus income to improve services to members.
Social Responsibility: Credit unions were born of a social mission to provide credit and loans responsibly to locals, who could not access them from banks and to provide them at an affordable rate instead of payday loan rip offs.
Community: Banks are open to the public for gaining new customers, but credit unions are open to people who live or work in the same area.
Credit Union vs Bank Mortgage: How to choose?
Since 2020, Central Bank of Ireland have allowed credit unions to offer home mortgages and business loans to its members. In Ireland only a handful of banks make up a large portion of the mortgage market, but don’t make sure you check your credit unions when shopping for a mortgage lender. Credit unions provide a number of benefits, such as lower rates, fewer fees and personalised customer service. If you are not a member of a credit union, a bank could be a better fit if you aren’t a member of a credit union. Always shop around with at least three mortgage lenders including credit unions and choose one that best fits your needs and financial situation.
>> Read More: Best First Time Buyer Mortgages
Pros and Cons of a Credit Union Mortgage
Pros:
- No arrangement fees
- Some credit union offer lower interest rates than banks
- More personalised and superior customer service:
- Better mortgage approval process experience
Cons:
- You have to meet specific credit union membership requirements and become a member to apply for a mortgage.
- Lagging Technology compared to banks.
- Credit unions are mostly local and rarely national.
Credit Union Mortgages FAQs
How many credit unions are there in Ireland?
According to the central bank of Ireland, there are 218 registered credit union members in Ireland.
Do credit unions offer mortgages in Ireland?
Since 2020, credit unions have been approved by central bank of Ireland to offer long term loans such as home mortgages to its members.
Do credit unions in Ireland offer buy to let mortgages?
Credit unions in Irelands are only authorised to offer and sell home mortgages. Buy to let mortgages are currently not offered by credit unions.
What is the maximum mortgage loan a credit union can approve?
Unlike banks, there is a limit to the maximum mortgage a credit union offers. The maximum mortgage loans varies from credit union to credit union. Some credit union may only off €150,000 maximum while another may offer €700,ooo maximum.
Are credit unions safer than banks?
Credit Unions are safe. They are registered and authorised to accept deposit from members and these deposits are protected by the deposit guarantee scheme.
