Today London Mutual (LMCU) becomes the first UK credit union in over 25 years – and the first in London – to enter the mortgage market. Amid housing and cost-of-living crises, we hope to provide an alternative option for young Londoners hoping to get onto the housing ladder, as well as helping re-mortgagers hit by interest rate rises.
The new credit union mortgage product will be open to both new and current members, and anyone who meets our membership criteria will be able to apply.
Credit unions like London Mutual have long been known for our savings and loan products, as well as for working to tackle financial inclusion by creating an alternative borrowing option for low-income residents at risk of loan sharks and payday lenders.
Our aim is to bring the same ‘people-first’ approach to mortgages, with features including:
- Up to four applicants (enabling extended families or housemates to apply jointly);
- Consideration of NHS and agency work income;
- A manual underwriting process, so we can consider a range of financial circumstances.
Members will be able to apply for mortgages of up to £350,000, with a maximum term of 25 years. Applicants will be able to benefit from a discounted rate for the first 2 or 3 years, with a variable rate afterwards.
Through our salary deduction partnerships, staff at 25+ employers across London will optionally be able to have their mortgage repayments taken through their salary each month. Eligible employers include Transport for London, Camden, Southwark, Lambeth and Westminster Councils, the GLA, and the UK Armed Forces.
London Mutual Chief Executive Lucky Chandrasekera said,
“We are thrilled to be able to offer this new mortgage product to our members. It has been a long time since a UK credit union has offered mortgages. We hope this product will make a significant contribution towards helping a wider range of people onto the housing ladder by providing greater personalisation and flexibility”
He added,
“Our ambition is to become the UK’s first fully-fledged community-owned bank, offering a full range of financial products to our members. With savings, loans, current accounts, and now mortgages, we are one step closer to making that vision a reality today.”
Visit our new mortgage pages to learn more about the products we offer, and to submit an expression of interest.
