The number of mortgages issued by credit unions jumped by 80% during 2023 to around 1,800 as the total value of all mortgages held by these providers reached over €500m.
That’s according to the latest report from the Irish League of Credit Unions (ILCU), which represents 92% of credit unions operating in the country.
Its latest report found that 570 mortgages were issued between October and December last year, an increase of 15% compared to the end of 2022.
In 2022, credit unions issued just 1,000 mortgages. The value of all credit union mortgages at that point was €350m.
While credit union mortgages are growing, it is still a small proportion of the overall mortgage market. According to figures from the Banking and Payments Federation, Ireland, between October and December last year, its members saw 11,584 new mortgage drawdowns worth a combined €3.3bn.
In December, new legislation was passed by the Oireachtas which the Government hopes would allow credit unions to expand their reach in the mortgage market.
The ILCU’s quarterly results show an overall increase in lending across all areas of 2.2%, when compared to growth of 0.9% in the same quarter a year earlier.
In total, there were over 112,000 new loans issued between October and December, up 4%, which equates to over 1,200 loans issued every day.
The assets of ILCU affiliated credit unions stood at €18 billion at the end of December 2023.
This has increased by over 40% over the last 10 years reflecting the continued growth of credit union activity.
Similarly, savings in credit unions have increased to €15 billion.
The ILCU says arrears remain close to all-time lows. The increases in lending are in the context of exceptionally low arrears of 2.7%, which compares to a current 90-day mortgage arrears ratio of 4.1%.
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