CU Home Loans

E

EO2020

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The website for credit unions Ireland states that over a 100 credit unions are offering mortgages, however they seem to be very hard to find. I've only found two that are offering them on their websites.

Does anyone know which credit unions are offering mortgages, or where this info might be found?

Or does anyone have any experience of applying to a CU for a mortgage?

Thanks
 
My guess (and it's just a guess) is that a CU in Kerry is unlikely to lend to someone resident in Donegal, so maybe call up some of the larger CUs in your locality.
 
Exactly as above, credit unions are bound to the rules of common bond. If you can't become a member, they can't lend you money.
 
Also check that they are not calling them by some other name like loans, ring the bigger ones near you and see do they lend for a house purchase. During my time on a credit union lending committee we approved several home loans but they were not called mortgages as they were set up slightly differently.
 
RedOnion said:
Exactly as above, credit unions are bound to the rules of common bond. If you can't become a member, they can't lend you money.
Click to expand...
Thank you, I'm aware, but due to my home locality and my job there are numerous credit unions I could join should I choose to. Almost none are advertising mortgages though, even though apparently at least 100 are offering them.

If anyone has applied for one, it would be interesting to hear their experience. I'm particularly wondering if they might take more personal approach than the banks regarding credit history.
 
If you only join a Credit Union today they'll hardly approve you a large loan like a mortgage tomorrow!
 
EO2020 said:
there are numerous credit unions I could join should I choose to
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It'd be unusual for anyone to meet the common bond requirements for more than 4 credit unions (and that's including community and industrial credit unions). There can't be that many you'd need to call.

When they first announced mortgages, they were relatively competitive, but the market has become a lot more competitive since and the credit unions haven't brought their rates down. The few I'm familiar with have a waiting list - there's only a certain percentage of their total loans that can be long duration, and they've used that up.

A few examples of what's available:
stcanicescu.ie

Mortgages - St. Canice's Credit Union

Mortgages – From the people you trust. St. Canice’s Credit Union offers mortgages to our members at very competitve rates.
stcanicescu.ie stcanicescu.ie

[broken link removed]
 
Rosjohn said:
If you only join a Credit Union today they'll hardly approve you a large loan like a mortgage tomorrow!
Click to expand...

Thank you, I am aware of that. I do have transferable history with CU though.
 
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RedOnion said:
It'd be unusual for anyone to meet the common bond requirements for more than 4 credit unions (and that's including community and industrial credit unions). There can't be that many you'd need to call.

When they first announced mortgages, they were relatively competitive, but the market has become a lot more competitive since and the credit unions haven't brought their rates down. The few I'm familiar with have a waiting list - there's only a certain percentage of their total loans that can be long duration, and they've used that up
Click to expand...

I've counted at least ten already that I am eligible for, and I'm already a member in 2, so can transfer easily (which also transfers history).

Thanks for the info, that's interesting.
 
Rosjohn said:
If you only join a Credit Union today they'll hardly approve you a large loan like a mortgage tomorrow!
Click to expand...

They actually might! Times have changed and especially for a secured loan like that you could definitely apply immediately after joining, at least in the one I have experience of anyway time saving was not a requirement except for unsecured loans.
 
We tried the CU for a mortgage but they wouldn't lend for self-build, only for house purchase, if that info is any help to you.
 
We have a mortgage with the credit union. Its advertised on our local credit unions website, but its also one of the larger ones, 5 branches across a number of towns etc.
They used to offer a secured home loan which as mentioned above operates very like a standard credit union loan and wasn't called a mortgage. When we applied they had switched to CU Home loan scheme which operates the very same as other mortgages. We applied directly and dealt with the lending manager only so it was more personal. Slower though as when he was on holiday nothing happened.

My solicitor said the scheme was messy to deal with as we dealt with the CU and solicitor, while she had to deal with a company called Link ASI which is who the league of credit unions nominated to deal with the legal aspects for them. She said they were a nightmare to deal with, but we got through it.
 
Many of the CUs are offering switcher mortgages only and not new loans, with a max lending limit and time frame
e.g. CANA
www.canacu.ie

Loans - CANA Credit Union

CANA Credit Union offers an excellent range of loan products. Our personal approach is aimed to help you – our members.
www.canacu.ie www.canacu.ie

There were a few articles in the last 12 months or so saying the lending limits were being raised for CUs but I've not seen it come through yet
 
TheJackal said:
Many of the CUs are offering switcher mortgages only and not new loans, with a max lending limit and time frame
e.g. CANA
www.canacu.ie

Loans - CANA Credit Union

CANA Credit Union offers an excellent range of loan products. Our personal approach is aimed to help you – our members.
www.canacu.ie www.canacu.ie

There were a few articles in the last 12 months or so saying the lending limits were being raised for CUs but I've not seen it come through yet
Click to expand...

The concentration limits were relaxed on the 1st of January. They were previously restricted to having no more than 30% of their loans out for terms > 5 years and 10% of their loans >10 years. They could apply to have these increased to 40%/15%. Now they can lend up to 10% of their total assets in house loans.

For a €100m asset credit union they can now do up to €10m in mortgages whereas before January, assuming they had the average sectoral loans to asset ratio of 30%, they would have been restricted to no more than €3m out over 10 years.
 
Most of the larger credit unions are doing mortgages. So just contact large credit unions that you meet their common bond requirements. Most do self builds as well.
 
As usual with Credit Unions there are several routes home.

Some claim that they lack skills to take on mortgage - which is patently untrue.

Some have outsourced the underwriting process which reflects lack of confidence.

Some have realized that the requirements are not difficult and I believe Wellington IT system caters for mortgages.


But three ways to skin the cat is how CUs operate.
 
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