More credit unions must offer mortgages, says Limerick senator

MORE credit unions across Ireland, including Limerick, should be able to offer mortgages.

That’s the view of Limerick Senator Maria Byrne, who says that the withdrawal of Ulster Bank and KBC from the Irish market has heightened the need for more competition in the home loan sector.

Ms Byrne, who is Fine Gael's Seanad spokesperson on finance said: “It is crucial that more credit unions nationwide can extend their loan book to mortgages, including more substantial mortgages, and become a competitive force in the Irish mortgage market for their members.”

At present, she pointed out, the average mortgage lend by a credit union is €100,000, while the average price of a home in Limerick is close to €250,000.

Ms Byrne believes that the Credit Union (Amendment) Bill “will provide a significant step forward in securing a viable future for credit unions across the country and will help them to better serve their million members and achieve their ambitions for future growth in the provision of financial services.”

“All credit union members should be able to access the full suite of the financial services available. Every member should be able to open a credit union current account and access a mortgage product. That is not happening at present, but this bill will help the credit union movement to meet this objective if they so wish,” Senator Byrne added.

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