Salary deduction

Juggling your finances isn’t always easy, especially when you’ve got a job that keeps you on your toes.

That’s why we work with local employers to make it a bit easier. Through our payroll schemes, you can arrange to have a portion of your salary deducted each month and put straight into your savings or towards the cost of your loan. No standing orders, direct debits or forgetting to pay, just peace of mind for you.

Our Employer Partners

We’re proud to have relationships with local employers across sectors including health, education and local government. If your employer is listed below, we’ll take you through all the steps necessary to arrange a payroll deduction when you become a member or apply for a loan.

Get Started

To get started, simply select the organisation you work for from the list of employers below. We’ll then take you through all the steps you need to become a member, and to start borrowing or saving with us.

Select your employer from the list below:

How it works

Salary deduction (sometimes called payroll deduction), is a staff benefit offered by hundreds of employers across the UK.

Become a member online

You can join online straightaway, or do it at the same time as applying for a loan. The application form takes around five minutes to complete. As part of the joining process, we’ll ask for your National Insurance number, which we will use to identify you to your employer.

Save or apply for a loan

When you sign up, you’ll have the option of choosing an amount to save regularly. Need a loan immediately? You can apply for a loan the same time as you join. Depending on whether you meet certain criteria, we can lend up to £25,000 at rates as low as 4.5% APR.

Membership Account

After some standard ID checks, you’ll get a membership pack in 7-10 days. You’ll also receive a basic Membership Account, which you can access by logging in via our mobile and online apps.

We'll Do the Rest

We’ll pass on your details to your employer’s payroll department, letting them know how much to deduct each month for savings or loan repayments.

On Pay Day

Your chosen savings and/or loan repayments will be taken off at the same time as tax and any other deductions. The money will appear in your credit union account a few days later. You’ll receive the rest of your salary as normal.

Accessing your Money

You can check your savings balance and withdraw it at any time using our mobile or web app. If you have a loan with us, anything saved in your Membership Account will be held until your loan is fully repaid.

Membership benefits

Convenient savings

Start putting away some of your salary each month for a rainy day, or towards your long-term financial goals. Save anything from £20 to £500 a month, and watch it grow. Salary deduction makes it effortless.

Affordable Loans

Borrow anything from £100 to £25,000, at rates from 4.5% APR. Our personalised decision process means you’ve got the best possible chance of us saying ‘yes’, with convenient repayments from your salary.

Commodo MasterCard

Commodo gives you the benefits of a credit limit (up to £2,000, 19.6% APR) and a contactless MasterCard, but without the hassle or pitfalls of a credit card. There’s one fixed monthly salary-deducted repayment.

Salaryflex Overdraft

With Salaryflex, you get access to a overdraft of up to £2,000 (19.6% APR), in return for agreeing to set up a monthly salary deduction into your credit union account.

Good to know

What are the advantages of salary deduction?

Saving or repaying your loan via salary deduction means you don’t even have to think about it—the money is deducted and put into your credit union account on pay day. This keeps things easy for you, as it means there’s no risk of overspending before you’ve had the chance to put some money aside to save, or of missing a loan repayment.

This also helps to keep our costs down, allowing us to pass these savings onto you in the form of better rates and more generous loan amounts than would be otherwise possible.

How do I get started with salary deduction?

If your employer is one of those listed above, then you’ll have the opportunity to let us know when you apply to join London Mutual as a member.

Simply complete the application form online and select your employer’s name from the list provided. Don’t forget to complete the payroll deduction part of the application and the amount you want to be deducted & saved every month. We will do the rest.

I'm an employer and interested in partnering with you

Great! We’re always looking to expand the number of employers we work with. Credit union membership is a great way to promote saving and other good financial habits among your staff. There are no charges from our end, and we’d be happy to take you through the steps needed to set it up with your current payroll provider. Get in touch to get started.

What happens if I change employers?

If you move jobs while being a member of LMCU, you can continue to maintain your account with us. If your new employer does not offer payroll deduction (and it’s worth asking them to consider it), then you’ll still be able to save regularly or make your loan repayments in branch, via direct debit or by standing order.