Credit union mortgage loans soar

Glasgow Credit Union (GCU) recorded a 43 per cent jump in mortgage lending last year as frustrated buyers sought an alternative to traditional outlets.

The union, the UK's largest with more than 26,000 members, said lending grew from 6 million in 2009 to 8.6m last year. It also predicted a further rise to 12m in 2011.

The figures compared with a 5 per cent drop in mortgage lending reported last week by the Council of Mortgage Lenders, which said the 2010 figure was the lowest for a decade.

Paul Mcfarlane, head of operations at GCU, said "In this uncertain economic climate credit unions remain a real option for individuals, couples and families looking for competitive rates from a reputable organisation. This is mirrored in our increasing membership numbers."

Some 10,000 people have joined GCU since September 2008, with new memberships rising from an average of 1,000 members a year to over 3,000, he added.

"The growth of Glasgow Credit Union illustrates changing attitudes towards financial decision making. Consumers are becoming increasingly savvy when making money choices," he said.