Family Saver loans work differently from traditional borrowing. Instead of just taking out money and struggling to pay it back, you actually end up in a better financial position than when you started. The loan helps with your immediate needs while automatically building savings for the future.
Here’s the magic: Your Child Benefit comes into your credit union account every month, and we use part of it to cover your loan repayments while secretly squirrelling away a little bit extra into a savings account. By the time your loan is paid off, you’ve not only sorted out whatever prompted the borrowing, but you’ve also built up a proper nest egg for next time.
Getting started isn’t complicated
First, you need to become a member of London Mutual Credit Union. If you live, work, or study anywhere in Southwark, Lambeth, Westminster, or Camden, you’re in. We also welcome anyone who works in healthcare or education anywhere in Greater London, as well as the armed forces UK-wide
What you need:
- Photo ID and proof of address
- Evidence you receive Child Benefit
- That’s it – nothing too dramatic
You can apply for membership and your loan at the same time, which saves faff. Once approved, we’ll help set up your account and get your Child Benefit redirected through HMRC. This takes a couple of weeks, but your payments carry on as normal while the paperwork processes.
How the money actually works
Depending on whether you’re new to us, you can get £100-£1,200. The interest rate is 42.58%, and you only pay for the time you actually have the money.
Example: £600.00 borrowed over 9 months at 42.58% APR. Total repayable: £693.54.It’s like having a very organised friend who insists on putting money aside for you whether you remember to or not.
The clever bit that sets this apart
What makes this genuinely different is that automatic savings element. Most people find it almost impossible to save money consistently – there’s always something that needs paying for. But when it happens automatically before you even see the money, it’s amazing how quickly it builds up.
By the time you’ve finished paying back your loan, you’re not just back to square one – you’re actually ahead of the game. It’s honestly quite satisfying watching that little savings pot grow month by month.
What happens when life throws another curveball
Because let’s face it, if you’re a parent, life will definitely throw another curveball. Once you’ve paid back at least a third of your original loan, you might be able to borrow up to another £200. Just text “canitopup” to 80011 for an instant eligibility check.
This means you don’t have to start the whole application process from scratch every time something unexpected happens. Maybe the car needs an MOT, or there’s a school trip that costs more than your monthly grocery budget.
Building towards something better
This isn’t just about managing today’s problems – it’s helping you build a more stable financial future:
- Credit improvement: Monthly repayments reported to credit agencies
- Higher borrowing: Successful first loan? Qualify for up to £1,200 next time
- Financial education: Access to budgeting workshops and money management tips
Most of our members say it’s the first time they’ve ever borrowed money and felt good about it. Instead of that nagging worry about debt, they can see their savings growing and know they’re building something positive.
The application usually takes about a week to ten days once we’ve got your paperwork, including setting up your account and redirecting your Child Benefit. It’s not instant, but it’s thorough, and it sets you up properly for success rather than just throwing money at the immediate problem.
