Glasgow Credit Union makes £10m pledge to first-time buyers
The UK’s largest and most successful credit union has launched its promise to make mortgage borrowing more accessible and affordable, by removing all set up, arrangement and product fees.
The credit union’s innovative partnerships with house-builders and government shared equity schemes also mean that first time buyers can also get onto the ladder from as little as £1,000 deposit, whilst benefiting from the credit union’s promise of personal underwriting, a mortgage decision in just five days and providing every applicant a named mortgage advisor to help guide them through the purchase.
Glasgow Credit Union’s June Walker said: “Whilst the high street banks advertise mortgages with large deposits which freeze out young families looking to get onto the property ladder, we are committed to getting renters with a proven track record in bill management, first time buyers and families in homes they’ve outgrown moving into homes that fit their needs.”
She added: “The mortgage market is marginalising young people who want to own homes that fit their needs. This age group can more than afford mortgage repayments and in many cases are spending more on rental accommodation than they would on a mortgage repayment, simply because they haven’t got a large deposit. Mainstream banks and mortgage lenders are making much of their low rates in the news, yet only older homeowners with lots of equity or those with large deposits quality for these deals. Glasgow Credit Union aims to make being a homeowner accessible and affordable for this generation, who need suitable housing, now.”
The credit union has helped almost 700 Glaswegians into their own homes, and currently has £45m out on home loans.