Case study: Credit union saved the day when new home looked in peril

David Steel had no idea that his credit union offered mortgages when the Glasgow-based first-time buyer was looking for a mortgage.

But in August last year, as David and partner Joanne, expecting their second baby, were set to move into a new home, their building society delivered a bombshell.

"The timing of the move was perfect, giving us a month or two to settle in before the baby arrived. But two days before completion, we received word that our mortgage offer had been withdrawn due to a change in the lender's mortgage lending policy."

David has long been a member of Glasgow Credit Union (GCU) but was unaware that if offered mortgages.

"When we hit this wall, I went to the GCU website to see if it had any guidance for people in these situations - I was due to complete the sale and didn't know which way to turn.

"I was surprised to read that the union offered mortgages to members and called straight away."

David and Joanne quickly arranged a mortgage with the union, with the added bonus that its rate and application fee was cheaper than the deal the building society had offered.

"I've got a good credit status, I had enough savings for a 15 per cent deposit, yet my credit union could offer me a better deal than a whole-of-market mortgage adviser could. I had a concrete decision and an agreed mortgage with GCU within 24 hours."

The process of checking that he could afford the mortgage was thorough, according to David.

"They went through all our incomings and outgoings and were very professional. It was clear they would only lend if they were sure you could afford it."

The family are now settled in their home, a new build in Glasgow.

"My daughter is 11 weeks old and we've just had our first family Christmas together," said David.