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Bank of Ireland

Credit Unions Launch Standardized Mortgage Product with Low Interest Rates

Strategic Insights

— 2 min read

Prospective home buyers and those looking to switch lenders have been given a boost this week with the launch of a new standardized mortgage product by credit unions. This initiative aims to provide more choice and flexibility in the mortgage market, ultimately benefiting consumers. The "Credit Union Mortgage" offers a single variable interest rate of 3.85 per cent, which is among the lowest variable rates currently available in the market. This rate is capped at 4.4 per cent for the first three years, providing certainty for borrowers.

Key Takeaways:

  • The Credit Union Mortgage offers a variable interest rate of 3.85 per cent, one of the lowest in the market.
  • The rate is capped at 4.4 per cent for the first three years, providing borrowers with certainty.
  • The mortgage product is available in around 30 locations nationwide, with 40 more coming online next year.
  • Credit unions have increased their mortgage lending, accounting for 11 per cent of their total loan book as of June 2025.
  • The Central Bank of Ireland's regulatory lending changes, which came into force on September 30, have created an estimated €7 billion in additional lending capacity for mortgages and business loans.
  • The Credit Union Amendment Act (2023) allows credit unions to refer their members to other credit unions for lending support.
  • The new mortgage product is a result of collaboration between credit unions, backed by government policy to improve choice in the mortgage market.
  • The standardization process has been led by CU Mortgage Services, demonstrating the industry's ability to work together to address issues in the housing market.
  • The government has committed to addressing the housing crisis, with initiatives such as reducing the VAT rate on the sale of new apartments and enhancing corporation tax deductions.

Statistics:

  • Credit unions' mortgage lending accounts for 11 per cent of their total loan book.
  • The credit union sector's total loan book surpasses €7.4 billion as of June 2025.
  • The Central Bank of Ireland's regulatory lending changes have created an estimated €7 billion in additional lending capacity for mortgages and business loans.
  • The VAT rate on the sale of new apartments has been reduced to 9 per cent until 2030.
  • The new mortgage product is available in 30 locations nationwide, with 40 more coming online next year.

Sources:

  • The Irish Sun article by ROBERT TROY, Minister of State with Responsibility for Financial Services, Credit Unions, and Insurance.
  • The Credit Union Amendment Act (2023)
  • Central Bank of Ireland's regulatory lending changes.

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