Finance built for life in the Forces
Savings & Loans with salary deducted repayments for members of Armed Forces
London Mutual Credit Union works with the MOD to make it simple for members of the armed forces community to build savings and to borrow affordably.
Build a savings pot
Get savings automatically deducted from your pay before it even hits your account.
Borrow at low rates
Borrow at preferential rates, with APR lower than most credit cards and overdrafts.
How it works
Become a member
As a credit union, we’re owned by our members. We exist to support your financial well-being, not to make a profit. You can join the credit union at the same time as you apply.
Save as you borrow
You can start saving into your credit union membership account as soon as you join. Or, take advantage of our low rates to consolidate existing debts, or to spread one-off costs.
Repay via your salary
Thanks to our partnership with the MOD, through the ‘Joining Forces’ initiative, all savings and loan repayments will be automatically deducted and appear on your payslip.
Apply for a loan online
As a credit union member, you can borrow up to £25,000 (subject to affordability checks). And because applications are considered by a real person, not a computer, we may be able to help even if your credit file isn’t perfect.
Who can apply?
Current members can apply for a loan at any time. Assuming you live within our common bond and are eligible to join, it is also possible to become a member at the same time as you apply for a loan.
Certain products and promotions are only open to those who have been a member for a certain period of time, have a certain amount saved with us, or who are signed up for payroll deduction.
The application process
Our online application form is straightforward, and should take about 15 minutes to complete. Before you begin, it's worth having your national insurance number handy, as well as a photo or scan of your payslip and bank statements. You may be asked to provide these as part of the process.
Once your application has been received, it will be looked at by a member of our loans team, who will use the information you've provided to decide whether or not we can approve your application. This can take 7-10 days. We'll update you by SMS and let you know the outcome when this step is complete.
If your application is approved, you'll be asked to sign a loan agreement setting out the terms of your loan, including details such as the amount to be borrowed and the repayment period.
Once the loan agreement is signed, we'll transfer the funds into your account within 2-3 working days. Loan repayments will then take place on the date and via the method agreed.
Will I be accepted?
We will make a decision based on how much you have applied for, and our assessment of your ability to repay. We'll do this by at your income, expenditure and credit history. When you apply, we may ask you to provide bank statements and payslips as evidence of this.
All loan decisions are made by a person, not a computer, and so we will always try to take the whole picture into account. In cases where we can’t approve the full amount, we may be able to offer you a lesser amount, or an alternative rate.
How to apply
You can apply at any time using our online application process. Simply use the calculator on this page to decide how much you'd like to borrow and over what period of time. Then, click 'apply for this loan' to begin the process.
You can also apply in person in any of our branches - just be sure to bring valid ID and proof of address, payslips and bank statements with you.
What can I get a loan for?
Loans can be used for almost anything, from short-term emergencies to home improvements. Here are some examples of the types of things that other members in the armed forces have borrowed for:
Buying a car
Borrowing from us is often cheaper than purchasing via car finance, and you’ll own the car outright.
We can help you pay off credit cards and overdrafts more quickly, saving you money on interest.
If you’re looking to make the UK your permanent home, application fees shouldn’t be a barrier.
Sometimes life doesn’t wait . If you’re ready to pop the question, we can help you sort the rest.
Who can join?
Membership is open to any member of the UK armed forces or reserves including:
Serving members of the the Royal Navy, British Army or Royal Air Force
Veterans, if receiving an armed forces pension
Army, Navy, RM and Special Forces Reserves
Immediate family of an existing member, if living at the same address
Who we are
London Mutual Credit Union
London Mutual is one of the UK’s leading credit unions. Credit unions are owned by their members and run not-for-profit.
For over 30 years we’ve served communities across London. Now, in partnership with the Ministry of Defence, our services are available to the UK armed forces too.
Ministry of Defence
We work in partnership with the MOD, working to build the financial strength of armed forces personnel and their families through its ‘Joining Forces’ initiative.
Through our work to improve the financial resilience of members of the armed forces, London Mutual has been awarded the Armed Forces Covenant Bronze Award.
In 2015, we were honored to welcome Sgt Johnson Beharry VC as our first member from the armed forces.
Why a credit union?
Owned by the community
We are run for our members from across the armed forces community, not shareholders. That means we put yourt financial well-being first, and do what’s right right for you, not just our bottom line.
Low rates of APR
With loan rates from 4.5% and no hidden charges or early repayment fees, members can save hundreds of pounds compared to credit cards, overdrafts and online lenders.
Your money is safe
Frequently Asked Questions
What is a credit union?
Credit unions are not-for-profit, member-owned, financial co-operatives that exist for the benefit of a group of members who share a common bond, such as where they work or live. It is London Mutual Credit Union’s mission to provide our members with access to reasonably priced financial services and encourage the development of good financial practice.
How is a credit union different to a bank?
The biggest difference between credit unions and banks is the member’s ownership or involvement in the institution.
While you think this may not affect you, it actually does. Credit unions are not-for-profit organisations owned by their customers, who are called “members.” As a member and owner, you are given the opportunity to gain greater control over your finances. Banks are for-profit corporations, with declared earnings paid to stockholders only.
What is involved in becoming a member?
As a member of the credit union, you own part of the credit union through your shares. The members own, control, and administer the Society (the credit union). Because you are a member and partial owner, the credit union works for you. Therefore, as a member of the credit union you will have access to ethical and affordable loans and more financial advice as to which loan product is best for you.
What does it mean to having savings with the credit union?
This means that not only do you have more control over your money, but also, as a shareholder, you will receive a dividend on your Membership Account whenever the company is making a profit.
What makes you ethical?
Credit unions strive to offer fair, competitive financial services to individuals from all walks of life, regardless of their social status and economic background. Additionally, we believe that borrowing money should be a carefully thought through process, and the way we lend is built around your ability to repay. Our dedicated employees want to work with you personally to create a repayment plan that best fits your situation.
Who can apply for a loan?
Only the members. As long as you are a member, you can apply via online or complete the paper application at one of our three branch offices.
What is a current account?
A current account is a bank account that allows you to access a range of banking services, such as receiving money (like your salary, pension or benefits payments), paying bills, and setting up direct debits and standing orders to make regular payments.
Our current account can be very useful for anyone looking for an easier, more affordable way to spend and access their funds. Opening a current account provides members with a MasterCard Debit card and allows access to their accounts from over 70,000 Link ATMs across the UK and our MasterCard is widely accepted throughout the world wherever you see the MasterCard sign.
How secure is my money?
The credit union, like banks and building societies, is regulated by the Financial Conduct Authority (FCA) and authorised by the Prudential Regulation Authority (PRA). Savers’ deposits are protected by the same Financial Services Compensation Scheme that covers banks and building societies. An eligible depositor is entitled to claim up to £85,000.
How are credit unions so affordable?
Credit unions do not have shareholders to pay, as our members are our shareholders. By law, the maximum interest rate that a credit union can charge its members for a loan is 3% per month or 42.6% APR. We are also very proud of our affordable CUOK payday loan service. The interest rate on a CUOK loan is much lower than that charged on typical payday loans, so taking out a CUOK loan saves you money and makes good financial sense.