"The new product has one of the lowest interest rates in the market, and comes weeks after credit unions were cleared to more than triple their current mortgage and business lending. Central Bank executives have given the go-ahead to changes to lending regulations for the sector. The new rules allow an increase in the total lending capacity of the sector for mortgage and business lending from €2.9bn to €9.9bn, the Central Bank said."
"The new product, Credit Union Mortgage, will mean there will be a standardised national mortgage, with a set interest rate. The new single mortgage product has a variable interest rate of a competitive 3.85pc. And the rate will be capped at 4.4pc for the first three years. Credit unions said the new product provides borrowers with a certainty of repayment, while also delivering the benefits of a variable offering."
Credit unions introduced a standardized national mortgage product called Credit Union Mortgage with a variable interest rate of 3.85pc and a three-year cap at 4.4pc. The Central Bank approved regulatory changes raising the sector’s mortgage and business lending capacity from €2.9bn to €9.9bn. CU Mortgage Services developed a centralised operation to support member credit unions in offering the product. The mortgage will be available to new buyers and switching borrowers in about 30 credit unions this month, expanding to roughly 40 next year. Officials and credit unions emphasized increased competition, borrower choice, and repayment certainty.
Read at Irish Independent
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