NE First

NE First is a credit union: a not-for-profit financial firm owned by its members rather than by shareholders. It takes savings from members and makes loans to members, and it is open to people who live or work in the part of the north east of England it covers. You cannot borrow from a credit union unless you are a member, and some credit unions ask you to build up savings before they will lend¹.

The range is narrower than a high street bank's. Credit unions in Northern Ireland are recorded as not offering mortgages and not offering insurance, and their product range centres on savings and loans instead². The same broad pattern holds for credit unions across the UK: they are a place to save regularly and to borrow at a rate set by the union, rather than a full-service bank with current accounts, overdrafts and mortgages.

This page covers what NE First offers, who can join, how to apply, how to complain, and how your money is protected. It does not give rates or fees, because those change and the credit union's own site at nefirstcu.co.uk is where today's figures sit¹.

What NE First offers

Two products sit at the centre of what NE First does: savings accounts and loans. Members pay money in, build a balance, and can then borrow. Some credit unions require a period of saving before they will lend, so the savings account is often the route in rather than a separate product⁴.

Credit unions are run in a not-for-profit way, which means any surplus goes back into serving members rather than to outside shareholders³. The Welsh Government's own guidance on credit unions makes the same point in its title: save, bank or borrow with a credit union⁵. That structure shapes what the firm does and what it does not do.

For a reader, the practical differences are these. Membership is based on a common bond, usually where you live or work, so not everyone can join a given credit union. The firm is owned by its members, so there is no external shareholder taking a cut. And the range of products is narrower than a high street bank's, which means you may still need a bank for day-to-day current account banking.

If you want the wider picture of how these firms work and how they compare with banks, the guide to credit unions sets it out.

Loans from NE First and how the cost of borrowing works

Loans are the main product a credit union sells, and NE First is no exception. The rule that matters most is the one about membership: you need to be a member of a credit union to get a loan from it, and some will ask you to build up savings first⁴. So the sequence is join, then borrow, not the other way round.

How the cost of borrowing works at a credit union is set by law as well as by the firm. That is a ceiling written into the rules, not a rate that any particular credit union has to charge, and it applies to credit unions in Northern Ireland. It matters because it caps how expensive a credit union loan can become, which is one reason credit unions are often used by people who cannot borrow cheaply elsewhere.

The cost of any loan depends on three things: the amount borrowed, the interest rate applied, and the period over which you repay. A longer repayment period lowers the monthly payment but increases the total interest paid. A shorter one does the opposite. Credit unions typically lend for a fixed term with a fixed repayment, so the monthly figure is known from the start. NE First sets its own rates and terms within those rules, and its own site is the place to check today's figures¹.

For the general mechanics of borrowing, including how interest is calculated and what a lender must tell you, see the guide to loans.

Saving with NE First

Saving is the other half of what a credit union does, and at many credit unions it is the route into borrowing. Members pay in regularly, build a balance, and can then borrow against their membership history. Some credit unions require a period of saving before they will lend⁴.

The mechanics are straightforward. You pay money in, it sits in your account, and you can usually withdraw it, though some credit unions ask for notice or limit withdrawals while a loan is running. Interest paid on credit union savings is typically modest, because the firm is not trying to attract deposits with headline rates; it is trying to give members a safe place to keep money and a pool from which to lend to other members. NE First sets its own rates, and its own site carries the current ones¹.

If you are comparing where to put savings, the wider market matters. The guide to savings accounts covers the different types of account and how interest works, and the guide to ISAs explains the tax-free options. A credit union account is one option among several, and it suits people who want to save with a local, member-owned firm and who value that over chasing the highest rate.

Who can join NE First

Credit unions are built around a common bond, which is the rule that decides who is allowed to join. Usually that means living or working in a particular area, or belonging to a particular employer or trade. NE First's own site sets out the exact area it covers and the current membership conditions¹.

The name history gives a clue to the area. The register lists previous names including Durham County Credit Union, Durham City & District Credit Union, and Durham, Cestria & Gateshead Credit Union¹. Those names point to the north east of England, around Durham, Chester-le-Street, Gateshead and the surrounding districts. If you live or work in that part of the country, you are likely to be within the common bond, but the firm's own site is the authority on the current rule.

Membership normally involves a small deposit to open a savings account, which is what makes you a member rather than just a customer. Once you are a member, you stay a member as long as you keep the account open, even if you move away, unless the rules say otherwise.

If you are outside the area, other credit unions cover other parts of the country, and the guide to credit unions explains how to find one that covers where you live.

How to join and apply for a loan

Joining and borrowing are two steps, and the order matters. You become a member first, then you apply for a loan as a member.

The general process runs like this:

1. Check that you fall within the credit union's common bond, usually by where you live or work¹.
2. Apply to join, which normally means opening a savings account with a small deposit.
3. Build up a savings record if the credit union asks for one before lending⁴.
4. Apply for the loan, giving the amount you want and the purpose.
5. The credit union assesses the application and sets the rate and term within its rules.

Applications for credit union membership are usually made online or by post, and many credit unions also take applications in person. NE First's site gives the current route and any documents you will need¹.

For the wider picture of how lenders assess applications, including what appears on your credit file and how it affects the outcome, see the guide to credit scores. If you are borrowing to consolidate existing debts, the guide to debt sets out the options and the free advice services.

NE First's former names and what they mean for members

The firm has been through several names. The register lists the current trading name as NE First, and previous names as NEFirst Credit Union, Durham, Cestria & Gateshead Credit Union, Durham County Credit Union, and Durham City & District Credit Union¹.

For a member, a change of name changes nothing that matters. Your savings balance, your loan terms, your membership rights and your protection under the Financial Services Compensation Scheme all stay as they were. The firm is the same entity throughout; only the name on the door changed. The register entry shows a single continuous authorisation¹.

The reason names change is usually merger. When two or more credit unions combine, the surviving firm often takes a new name that reflects the wider area it now covers. The sequence of names here, from Durham City & District through Durham County and Durham, Cestria & Gateshead to NE First, is consistent with that pattern of local unions joining together over time.

If you hold an old passbook or statement in a former name, it is still valid. If you are asked to prove your membership for any reason, the register entry linking the old and new names is the document that does it¹.

Complaints and where to get help

The first step with any complaint is always the firm itself. The Financial Ombudsman Service says it only looks at complaints that the business has had a chance to look at first⁶. The Consumer Council in Northern Ireland puts the same rule plainly: make a complaint to the provider in the first instance to give them the opportunity to put things right⁷. The ombudsman service repeats the point for insurance complaints: talk to your provider first, as they need to have the chance to put things right⁸.

So the route is:

1. Complain to NE First in writing, setting out what went wrong and what you want put right.
2. Give it the chance to respond, and keep a copy of everything you send and receive.
3. If you are unhappy with the final answer, or eight weeks pass without one, take it to the Financial Ombudsman Service.
4. The ombudsman service is free to consumers and its decision is binding on the firm.

The Financial Ombudsman Service publishes annual complaints data, which shows how many complaints each firm attracts and what proportion are upheld⁹. That data is a way to see how a firm handles complaints in practice, though it should be read alongside the size of the firm, since a larger firm will naturally have more complaints in absolute terms.

If your complaint is about a different kind of firm, the route differs. Complaints about water and sewerage in Northern Ireland go to Northern Ireland Water first, and then to the Consumer Council¹⁰. Complaints about benefits in Northern Ireland go to the Department for Communities¹¹. For financial firms like NE First, the ombudsman service is the route.

How your savings with NE First are protected

Loans and savings with credit unions are protected by the Financial Services Compensation Scheme⁵. That is the same scheme that covers money held with banks and building societies, and it exists to pay compensation if a firm fails and cannot return your money.

The scheme has limits, and the level of cover is set by the scheme itself rather than by the credit union. Before you rely on it, check the current limit on the FSCS website, because the figure can change¹². The scheme also covers some other products and not others: credit insurance claims, for example, are not eligible for FSCS protection¹³, and the scheme publishes separate guidance on what it does and does not cover for investments¹⁴.

Two practical points follow. First, the protection applies to the firm, not to the brand name, so if a credit union has traded under several names over the years, the cover is the same throughout¹. Second, the scheme covers deposits and loans, so both sides of your relationship with NE First are within it.

If you need extra support because of a health condition or a change in circumstances, the FSCS publishes guidance on targeted support for customers of failed firms¹⁵. And if you are unhappy with how a firm has handled your data, you can ask for it to be corrected, with the Information Commissioner's Office as the backstop¹⁶.