Home buyers are turning to credit unions for mortgages as interest rates climb, providing borrowers with more choice beyond the dwindling number of banks in the Irish market.
The Irish League of Credit Unions (ILCU), which represents over 90 per cent of active credit unions in the State, released it its financial results for the year on Wednesday, showing its mortgage sector has grown by over 50 per cent in the past 12 months, totalling almost €500 million.
Overall, loans were up 12 per cent to €5.3 billion, with over 420,000 loans issued in the year to September 2023.
The overall arrears ratio fell to 2.7 per cent, a record low, making it the lowest across the financial services sector, while capital reserves increased slightly to 15.8 per cent.
Member assets stood at €17.9 million (up 2.8 per cent), with the league noting that the credit union sector has grown at a "phenomenal rate", having more than doubled over the last 20 years.
Membership of ILCU affiliated credit unions totalled 3.2 million people in the latest tally, showing steady increases of around 1,000 members per week.
ILCU chief executive David Malone said the 2023 figures show "a clear growth trajectory", with annual lending growth hitting a 10-year high of 12 per cent.
Looking ahead to 2024, Mr Malone said new legislation for credit unions, which has now passed its final stages in the Dáil, will build on this growth, "increasing our national footprint in mortgages and commercial lending".
"Importantly, it will also serve to provide much needed choice in the contracting financial services market and evolve to position credit unions as the leading financial services provider of choice for the public," he added.
