Credit Union mortgage lending surges by 24% to €782m

Irish League of Credit Unions said mortgages now represented 11.7% of the sector's overall loan portfolio, up from 10.4% last year

'Credit unions are providing real choice and competition in the mortgage market while supporting members through some of the most important financial decisions they will ever make.'

Credit unions continued to grow their mortgage books, reaching €782m at the end of March, a 24% rise compared to the previous year.

The Irish League of Credit Unions (ILCU), which represents more than 90% of credit unions in Ireland, said mortgages now represented 11.7% of the sector's overall loan portfolio, up from 10.4% last year.

Separate data from Ireland's banks also report a surge in new mortgage lending, with €1.9bn in new mortgages approved in May.

The ILCU's overall loan book now stands at a record €6.66bn, up almost 10% on last year. The average loan outstanding rose to a new high of €11,319, with the overall loan arrears ratio remaining at a low level of 2.21% between January and March. The loans-to-savings ratio increased to 40%, reflecting continued progress in the deployment of member savings to support lending activity.

Credit unions issued €735m in new loans during the quarter, representing an increase of 11.5% in value compared to the previous quarter.

Commenting, Irish League of Credit Unions chief executive David Malone said: "The sustained growth in mortgage lending is especially significant, with the sector’s total mortgage lending now surpassing the €1bn milestone. This achievement underlines that credit unions are providing real choice and competition in the mortgage market while supporting members through some of the most important financial decisions they will ever make.”

Separately, the Banking & Payments Federation Ireland (BPFI) said a total of 5,694 mortgages were approved in May, with first-time buyers approved for 3,361 mortgages (59% of total volume).

The approvals represent a 20.4% rise on April and 13% increase compared with May 2025.

BPFI chief executive Brian Hayes said: “Today’s figures show strong growth in mortgage approval activity in May, with the value of approvals reaching almost €1.9bn, up almost 17% on the same time last year. 

"Approval volumes increased by 13% over the same period to 5,694. These were the highest monthly values since the data series began in 2011 and the second highest monthly volumes, after June 2022, when there was a surge in mortgage switching.” 

“First-time buyer activity remains the key driver of the market, reaching its highest levels since the data series began. While mover-purchase lending also grew, it accounted for only 18.3% of mortgage approval volumes, a historically low share of activity for the month of May. Meanwhile, switching activity reached the second-highest activity level since December 2022.”

Data released earlier this week shows the number of mortgages in arrears fell 17% last year to below 36,000. The number in long-term arrears (one year or more) dropped 16% to just over 16,000, from over 19,000 at the end of 2024.

Alongside continued growth in lending, credit unions' total assets increased to €19.82bn, while savings rose to €16.53bn, reflecting a 5.3% increase year-on-year. Capital levels remain robust at €3.18bn (16.02% capital ratio), well above regulatory requirements, and liquidity remains strong at 27.91%, equivalent to €4.28bnin liquid assets.

Membership is expanding across the credit union movement, with more than 74,300 new members joining over the last 12 months. There are now 3.36 million credit union members in ILCU-affiliated credit unions, with Ireland continuing to have one of the highest levels of credit union membership per capita worldwide.