DUBLIN, Ireland—Irish credit unions are taking a bigger step into the mortgage market.
Every credit union in the country can now offer mortgages, as credit unions can now refer mortgage applications to other credit unions should they not be in a position to provide the loan themselves, the Irish Times reported.
“This represents a watershed moment for credit unions and one that will see them eat into more of the banks’ mortgage pie in the coming years. We believe credit union mortgage lending could reach €1 billion annually by 2027, which could put credit unions in the top five mortgage lenders,” the Irish Times said.
Credit unions will also be able to refer applications for other products, such as business loans, current accounts and debit cards, to another credit union. They will essentially be able to partner with other credit unions to offer their members a wider selection of products.
The legislative changes signed in earlier this year could see credit unions become the social financial enterprises of the Irish mortgage market. Following the demise of building societies in the Republic, such a development would be a huge benefit for consumers, the Irish Times said.