Mortgage bid by credit union

One of the State's biggest credit unions has joined forces with IIB Bank to offer mortgages to its members.

Cork-based Bishopstown Credit Union, the biggest such institution in Munster and one of the top 10 in the Republic, will offer home loans through its three branches in the Cork suburb.

According to chief executive, Ray Kenny, the union decided on the move following a survey of its 21,000 members which found that 90 per cent of them wanted it to offer mortgages.

It subsequently approached the Irish Financial Services Regulator (Ifsra), which told it it would back the proposal once the members had approved it.

The credit union intends to put the proposal to its members at its annual general meeting (agm) on November 29th.

If they vote in favour of the proposal, then the credit union will seek final approval from the financial regulator.

Bishopstown Credit Union went through a similar process last year when it won the financial regulator's approval for a proposal to offer general financial services such as life cover, pensions and critical illness cover. Royal Liver provides these services.

Mr Kenny said yesterday that the credit union hoped to be in a position to offer mortgages in January at the latest. "Everything is in place now," he said yesterday.

"We will be offering the full suite of IIB products," he said. Mr Kenny added that the credit union felt that IIB offered the most competitive package.

The credit union will effectively operate as a tied agent of the bank. Charles Kiernan, IIB director of sales, said that the credit union movement offered another sales channel to the bank.