Why Now Might Be the Right Time to Switch Your Mortgage to Heritage Credit Union

A Big Change in Ireland’s Mortgage Market

As of September 30th 2025, there’s been a major development for credit unions in Ireland and for the mortgage market in Ireland more broadly. The Central Bank has increased the limit on how much credit unions can lend for home loans from 15% to 30% of their total assets, effectively doubling the sector’s lending capacity by around €6.6 billion.

This change means more competition, more choice, and fairer options for Irish borrowers, particularly those who’ve felt overlooked or stuck with less flexible lenders.

At Heritage Credit Union, this update means we can now offer home loans of up to €600,000, making it easier than ever for local members to access competitive, community-based mortgage options backed by trusted service.

Why Would You Consider Switching Your Mortgage?

Switching your mortgage may not be something that many people think about too often, but it can make a real financial difference for many. Some of the common reasons that a homeowner might consider switching mortgages include:

• Lower interest rates: Even a small rate reduction can save you thousands over the life of your mortgage.
• Change in financial circumstances: If your income, family situation, or expenses have changed, a new mortgage could better suit your needs.
• Pay off your mortgage faster: A lower rate or shorter term can help you become mortgage-free sooner.

And one less talked-about reason…

Along with these more obvious motives, there’s also a growing group of borrowers who feel trapped with vulture funds or non-bank lenders. According to Oireachtas research, as of mid-2024, nearly one-third of non-bank mortgage holders were paying over 6% interest, and around 7,000 customers were paying over 8%. Many of these customers face poor communication, limited flexibility, and steep variable rates.

For many individuals that fit within one of these cohorts of borrowers, a Credit Union mortgage could offer a fair, transparent alternative that suits their specific needs.

Why Switch Your Mortgage to Heritage Credit Union

Switching your mortgage is a significant decision and one that’s worth approaching with the full picture in mind. A mortgage from a credit union is unique in many ways:

1. We’re member-focused: Every credit union is owned by its members, the same people who save with it and borrow from it. That means when you take out a mortgage with Heritage Credit Union, your loan is funded by the savings of people within your own community, not distant investors or external funds.
2. We’re local, and human: All lending decisions are made locally, right here in Dublin and not by algorithms or remote head offices. You’ll deal directly with a member of staff who takes the time to understand your circumstances and help you find the right solution. Choosing a credit union mortgage also means supporting local and helping to keep lending power within your community and giving more people a fairer alternative to the traditional banks.
3. We’re amongst the most trusted brands in Ireland: Credit unions also have a long-standing reputation for outstanding service and trust:
• For a record-breaking eight years in a row, credit unions have been voted Ireland’s best organisation for customer experience in the CXi Ireland Report.
• In 2024, credit unions were ranked as Ireland’s most highly regarded organisation in the Reptrak® Ireland Study.
4. We see our members as more than just a number: We understand that life isn’t always straightforward and we take that on board. Maybe you had a temporary dip in income or missed a credit card payment once. While all lenders must follow Central Bank rules on loan-to-income (LTI) and loan-to-value (LTV) ratios, we take the time to look at the full story behind your application.
5. We won’t sell your mortgage to a vulture fund: Unlike some lenders, we don’t sell our mortgages to vulture funds. When you borrow from your local credit union, your loan stays with a trusted, community-based organisation that has your long-term interests at heart.
6. What you see is what you get: Our rates are straightforward and competitive, with no hidden fees or teaser offers that increase later. We’ll give you a clear view of your total repayments and explain how any rate changes could affect them over time.

Who Should Consider Switching Their Mortgage to Their Local Credit Union?

We’ve already spoken about common reasons to switch your mortgage and what makes a Credit Union mortgage unique. Even with all that in mind, we will be the first to admit that switching your mortgage to your local Credit Union is not for everyone. For many people though, it offers something powerful that’s hard to find elsewhere: fairness, transparency, and a local connection.

Here are a few groups who might find switching especially worthwhile:

1. Homeowners stuck with vulture funds or non-bank lenders

So we tee’d this one up earlier but it’s worth delving into in a bit more detail. According to MoneySherpa, there are a whopping 85,000 mortgage holders in Ireland whose mortgages are held by vulture funds (also referred to as “closed funds”).

These funds buy existing mortgages, often loans sold off by banks, and because they’re not actively competing for new business, they have no incentives to improve their terms or rates and their customers have fewer paths to refinance - for this reason, their customers are sometimes referred to as “mortgage prisoners.”

If your mortgage is held by a vulture fund (or “closed fund”), you may be facing steep interest rates, limited options, and little flexibility. As we mentioned before, as of June 2024, 29% of non-bank lender mortgage holders were paying over 6% interest on their mortgage, with 7,000 customers paying over 8%.

Switching to a credit union mortgage could be a way out. Whilst eligibility depends on your credit history, repayment track record, and meeting the Central Bank’s affordability and lending rules, a community-based lender like Heritage CU may be an option.

It’s worth reaching out and having a chat with our mortgage team - we may be able to offer an escape from mortgage prison with better stability, more personal support, and more control over your finances.

2. Borrowers who value trust, flexibility & local service over impersonal systems

Not everyone’s priority is chasing the lowest possible rate. For many, the way a lender treats them, the clarity of the process, and how accessible decision-makers are can matter just as much.

We’ve already discussed the various ways in which a mortgage from a credit union is unique. But for those people in this category, it’s worth reiterating the most relevant benefits:

• You’re dealing with people from your community, not faceless call centres.
• Decisions are made locally, giving more room for nuance in your application.
• You’re part of the organisation (you’re a member/owner), so your interests are aligned with the credit union’s.
• There are no exotic gimmicks or teaser rates - you get transparent terms from day one.

And as we’ve mentioned, credit unions consistently score highly for customer experience and reputation in Ireland. This is in no small part down to our more human, neighbour-first approach in finance.

3. Couples approaching the final stretch of their mortgage

If you’re already well into your mortgage and want to make sure the remaining years are fair and manageable, switching to a credit union could be a smart move.

At this stage, you’re less likely to be motivated by flashy offers or financial bells and whistles, and more likely to be focused on keeping things steady. You want predictable repayments, a lender who understands your situation, and the confidence that you’re being treated fairly.

A credit union mortgage offers that kind of reassurance. Consistent rates, flexible support if life throws a curveball, and a team who genuinely takes the time to listen.

If you’re in the final decade or so of repayments, having a local, member-focused lender by your side can make the journey simpler, clearer, and a lot less stressful.

Key Features of a Heritage CU Mortgage

If you’re thinking about switching, here’s what sets a Heritage Credit Union mortgage apart. We keep things simple - no gimmicks, just fair lending designed around you.

• Competitive variable rate: 4% per annum (Typical APR 4.07%) - a solid, community-based alternative, particularly for those tied up with vulture fund rates.
• No hidden fees or penalties: What you see is what you get. Our pricing is transparent, and there are no surprise charges or penalties for overpayments.
• Personalised approach: Every application is looked at on its own merits, not by a computer or algorithm, but by real people who take the time to understand your situation.
• Member-first values: Because we’re owned by our members, not shareholders, profits are reinvested into better rates, member services, and community projects.
• Peace of mind: Eligible members benefit from loan protection insurance, adding an extra layer of security for you and your family.

Example:

Séan and Mary have 20 years left on their mortgage. They have €200,000 outstanding and are paying an interest rate of 5.5%. Their monthly repayments are around €1,375.80.

What would happen if they switched to a Heritage CU Mortgage?

A Simple, Straightforward Switching Process

Switching your mortgage doesn’t have to be complicated. At Heritage Credit Union, we make the process as smooth as possible:

1. Get in Touch & Speak to Our Mortgage Advisor: Contact our lending team to discuss your current mortgage, your goals, and whether switching to Heritage Credit Union could save you money or offer more flexibility. We’ll outline what’s involved and answer any initial questions you have.
2. Get Your Documents in Order (We’ll Help You Prepare): We’ll provide a checklist of what’s needed, such as proof of income, ID, bank statements, and details of your existing mortgage. Our team is on hand to make sure you know exactly what to gather and how to provide it.
3. Submit Your Application: Once you’ve gathered your documents, it’s time to submit your mortgage application. Every application is assessed individually by real people who take the time to understand your full financial picture.
4. Receive Your Approval and Loan Offer: If your application is approved, you’ll receive a formal loan offer outlining your new rate, term, and repayment schedule. We’ll go through the details with you so you can make a confident, informed decision.
5. Complete the Switch: Your solicitor will handle the legal side, including signing the loan documents and arranging the release of funds. Once everything is finalised, your switch to Heritage Credit Union is complete!

Final Thoughts

With new lending limits now in place, credit unions are set to play a much bigger role in Ireland’s mortgage market. For homeowners seeking fair rates, local service, and genuine care, now could be the right moment to make the switch.

Here at Heritage, we will endeavour to take the time to understand your full financial picture, not just your numbers on paper. If your current mortgage feels inflexible or impersonal, it’s worth exploring what a credit union alternative could look like.

Talk to our Mortgage Team today to see how we can help you find a fairer, more personal mortgage solution.