DUBLIN, Ireland—New mortgage lending by credit unions jumped 51% in the year to September, according to the Irish League of Credit Unions (ILCU), which represents 90% of the total active credit unions in the Republic, the Irish Times reported.
New home loans rose to €560 million for the period, with mortgages now making up 10% of the total loan book of the sector, ILCU said. The value of total new loans rose 7.2% on the year to €2.78 billion, leaving credit unions with a total portfolio of €5.89 billion of loans.
“The credit union sector’s mortgage loan book has climbed to more than €700 million, almost doubling over two years, with clear momentum toward a €1 billion milestone over the next two years,” said David Malone, chief executive of the ILCU.
“We eagerly await the outcome of the Central Bank review of the credit union lending framework, and we would be hopeful of an easing of mortgage lending limits, further empowering credit unions to support homebuyers.”
The Central Bank eased restrictions on longer-term lending at credit unions in 2020, resulting in some large credit unions issuing mortgages and business loans, in some cases, of up to 15% of total assets. Still, for the majority of players in the sector, such long-term loans cannot exceed 7.5 per cent of total assets, the Irish Times said.
The regulator is planning to ease the rules further as part of a review that is set to conclude by early December, the Irish Times noted.