Credit union offers capped variable interest mortgages

Ballincollig Credit Union is one of the first credit unions in the country to offer members the new credit union mortgage developed by CU Mortgage Services, which provides a capped variable-rate mortgage for increased certainty and security.

A new mortgage offering from a Cork credit union with a capped variable interest rate has been described as a 'gamechanger' for homebuyers.

 Ballincollig Credit Union is one of the first credit unions in the country to offer members the new credit union mortgage developed by CU Mortgage Services, which provides a capped variable-rate mortgage for increased certainty and security. The mortgage offer a variable rate of 3.85%, the interest rate payable will be capped at 4.4% for the first three years of the mortgage.

"This is a gamechanger for mortgage holders in Ireland. Our members will get the benefit of a variable rate mortgage along with the comfort of knowing that there is a ceiling to their potential rate increase for the first three years," said Ballincollig Credit Union chief executive Eolan de Burca.

“Our new mortgage product is competitive, but more importantly, it provides our members with a certainty of repayment that is normally only seen in a fixed-rate product while delivering all the flexibility usually associated with variable rate mortgages. 

“We can do this because we are member-owned, we are using our members funds, and we’re not focused on making profits but on offering members long term value and support. Our mortgages are made by people, for people.

“We’re seeing huge interest in our new mortgage offering and any new or existing homeowners can speak to us in the credit union to find out more”.