Dublin: Credit unions across Ireland have introduced a new low-interest mortgage scheme aimed at supporting both first-time homebuyers and borrowers seeking to switch lenders. The initiative marks a significant expansion of credit unions’ role in the national housing market.
The launch follows the Central Bank’s decision in August to triple the sector’s overall lending capacity—from €2.9 billion to €9.9 billion—enabling credit unions to play a larger role in providing affordable financing options.
Under the new framework, participating credit unions will offer standard home loans at a variable interest rate of 3.85%, with a cap of 4.4% for the first three years. This makes it one of the lowest variable mortgage rates currently available in the Irish market.
Initially, around 30 credit unions nationwide will offer the mortgages this month, with 40 more expected to join next year. The scheme has been developed by Credit Union Mortgage Services (CUMS), established earlier this year to coordinate lending products across the sector.
Minister of State for Finance Robert Troy welcomed the development, saying it would provide “welcome relief” to both first-time buyers and mortgage switchers seeking more competitive rates.
The Irish League of Credit Unions noted that the scheme combines value for members with financial sustainability, while maintaining the credit union ethos of community-focused lending.
Seamus Byrne, Head of Credit Union Mortgage Services, said the initiative builds on credit unions’ strong reputation for responsible lending. “This new mortgage product will give our members a fair, transparent, and competitive option at a time when many are still struggling to secure affordable home loans,” he said.
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