London Mutual Credit Union’s new head office in Peckham was officially opened on Thursday 31st January by Deputy Leader of the Opposition, Rt. Hon. Harriet Harman MP. The community-owned financial institution, jointly owned by 16,000 members across South London, has transformed a former Southwark Council social services building into a modern headquarters offering affordable financial services to local residents.
The new 5,000 square foot premises houses a customer-facing branch on the ground floor with office space above, providing members with direct access to financial products that offer genuine alternatives to expensive high-street lenders. London Mutual’s Cash ISA currently pays 3.0% AER, while their innovative CUOK loan product provides short-term credit at just 26.8% APR – dramatically lower than payday lenders who typically charge up to 4,000% APR.
Since launching their payday loan alternative in February 2012, London Mutual has helped nearly 2,000 people move away from high-cost credit providers, delivering substantial savings to South London families facing financial pressure.
Member ownership enables community investment
The credit union purchased the former council building for £1 million, demonstrating the power of cooperative ownership in creating community assets. This member-funded investment represents a significant milestone for the organisation, which has grown from serving council employees to becoming one of London’s largest community-owned financial institutions.
London Mutual Credit Union Chief Executive Lucky Chandrasekera said:
“It is testament to the hard work of our volunteers and staff and the support of our 16,000 members that we have been able to buy our own premises. We have always been at the heart of our community and I am proud that we now have our own base in the centre of Peckham that is owned by our members. It will meet the needs of our expanding staff team as we expand access to many more people and will be a great advertisement to draw people away from the high cost lenders that plague our communities”.
Harriet Harman MP said:
“With payday loan shops blighting high streets, loan sharks stalking local estates and banks refusing to lend, there has never been a greater need for the excellent services of London Mutual Credit Union. Building on the great work they have done over the years, I am delighted to be opening London Mutual Credit Union’s head office in Peckham”.
Mark Lyonette, Chief Executive of the Association of British Credit Unions Ltd (ABCUL) said:
“It is always great to see credit unions expanding and reaching more people. When a credit union reaches the stage when it can buy its own premises, it is really a cause for celebration. The new building is one that any organisation would be proud of, but it is extra special here because it is through thousands of local people joining together in a credit union that this has been made possible.”
The opening ceremony welcomed Lord Roy Kennedy of Southwark, Vice Chair of the All Party Parliamentary Group on Credit Unions, alongside council leaders from Southwark and Camden – Cllr Peter John and Cllr Sarah Hayward – reflecting the cross-borough support for community-owned financial services.
The new head office marks a significant expansion of London Mutual’s capacity to serve members across South London, providing accessible financial services that prioritise community benefit over maximising profits.
