Mayo welcome for decision by credit unions to offer mortgages

A Mayo Oireachtas member has welcomed the decision of credit unions to offer their customers mortgages for the first time.

Senator Paddy Burke said elected representatives have been fighting for this significant development for many years to help people purchase their own homes.

He elaborated: "Credit unions are community based and I have no doubt that they will do a wonderful job in serving the people and providing very good value for money.

"About ten or 12 years ago, when new lenders entered the money markets, it was welcomed with open arms.

"At the time there were about 15 places in Castlebar where people could get finance and I am sure it was the same for equivalent-sized towns throughout the country.

"However, we then had the financial crisis and the upheaval of the financial markets.

"Now we might only have about six places where people can get finance with the result that some of the main lenders have increased their prices and are not giving good value for money, which is affecting hard-pressed people trying to buy a home.

"I welcome the decision by the credit unions and I hope they go from strength to strength.

"I hope they can take a big share of the 90% that is in play for the major banks at the moment.

"While a number of financial institutions, such as Ulster Bank, Irish Nationwide Building Society, Irish Permanent, ACC and KBC, have left the market, it is welcome that the credit unions are filling the void and I wish them well," he added.