‘Let credit unions give mortgages'
Fianna Fáil TD for Sligo-Leitrim Eamon Scanlon has said that now more than ever the Government must seriously examine the proposals put forward by Fianna Fáil to allow credit unions to provide loans to those wishing to purchase a home.
Deputy Scanlon said: "Young couples and individuals from across my constituency have attended my offices and advice clinics in desperate need of housing, often with too high an income to get onto a social housing list and too low an income to get themselves a mortgage from a traditional lender.
"There is a middle ground here with little or no support. Banks can be difficult to deal with and operate under strict criteria. We should generate alternatives for people. The Government should make use of the Credit Union network to provide home loan schemes. Under present legislation or Central Bank rules Credit Unions do not have the capacity to participate in schemes such as the Government-backed mortgage scheme.
"They are more than willing to do so. Credit unions are only lending 20% of their capacity. They have €1 million coming in per week that they cannot use."