Willowfield Credit Union

Willowfield Credit Union is a member-owned credit union serving people who live or work in the BT5, BT6, BT8 and BT23 postcode areas of Belfast and Newtownards. It takes members' savings in the form of shares, lends to members on a secured or unsecured basis, and pays a loan interest rebate back into members' shares. It is a small, local institution rather than a bank, and it is run on a one member, one vote basis¹.

The credit union's own pages describe three loan types: secured loans, unsecured loans and top up loans. Secured loans are secured against the amount you hold in shares and can be approved and paid immediately by loan officers appointed by the board. Unsecured loans, which are larger than the member's share balance, are assessed by a credit committee that meets weekly. Repayments can be made weekly, fortnightly or monthly, and there is no penalty for repaying early³.

Membership is open to people within the common bond area, and joining requires photographic identification. Savings are protected by the Financial Services Compensation Scheme, and the credit union appears on the Financial Services Register as Authorised, with permission to accept deposits¹.

What Willowfield Credit Union offers its members

Willowfield offers the three things a credit union typically provides: somewhere to save, somewhere to borrow, and a share in the running of the organisation. Its savings page describes savings held as shares, its loans page sets out secured, unsecured and top up borrowing, and its membership page explains the common bond and how to join².

Credit unions generally provide loans, savings, bank accounts and other services to their members, and many offer a wider choice that can include junior savings accounts, Christmas savings accounts, prepaid debit cards, insurance products, cash ISAs and in some cases mortgages⁷. Willowfield's own published product set is narrower than that: savings, loans and the insurance schemes described below. Its savings page does not list a current account, and the credit union's own pages do not advertise one².

The credit union's stated approach to lending is that it considers loan applications for productive or provident purposes, and that each application is considered on its merit³. In practice that means a loan officer or committee looks at what the money is for and whether the repayments fit, rather than applying an automated score alone. Some credit unions will lend as soon as you become a member, while others will only lend after you have saved for a set period, and affordability is checked against the money you have left after paying bills⁹.

If you are weighing up whether a credit union or another type of lender suits your circumstances, the credit unions guide sets out how the sector works, and the loans guide covers borrowing more generally.

Saving with Willowfield: shares, dividends and withdrawals

Savings at a credit union are known as shares, and at Willowfield each share is equal to £1². That is not the same as a share in a listed company: it is the member's stake in a mutual, and it is what makes the member an owner of the credit union rather than a customer of it.

There is an entrance fee to join, and members need to hold a minimum savings balance². The credit union's savings page sets out the current figures, and they are the ones to check before joining, because they can change. Beyond that, the credit union's savings page describes savings that can be withdrawn provided they are not pledged as security on a loan². That pledge point matters, and it is covered in more detail below.

Rather than paying a fixed rate of interest, credit unions pay a dividend out of any surplus. The remaining income after expenses may be returned to members as an annual dividend and a loan interest rebate, and the rate varies from credit union to credit union depending on the surplus of money available after all expenses are paid¹¹. A dividend is the return on your shares, paid by the credit union out of surplus¹². At some credit unions the dividend is declared annually by the board at the annual general meeting and ratified by a member resolution at that meeting¹³.

Because a dividend depends on surplus, it is not guaranteed and it is not the same as a bank's interest rate. Some credit unions also offer fixed term deposit accounts alongside ordinary shares, which work differently from instant access savings¹⁴. Willowfield's own savings page is the place to check what it currently offers and what it has declared.

Willowfield loans: secured, unsecured and top up

Willowfield's loans page lists secured, unsecured and top up loans³. The distinction between the first two is the one that matters most to a member.

A secured loan is secured against the amount you have in your shares, and it is available immediately, over the counter or by applying online. These loans can be approved and paid immediately by loan officers who have been appointed by the board of directors, without review by the credit committee³. In effect, you are borrowing against your own savings, which is why the decision can be made on the spot.

An unsecured loan is one that is higher than the amount of your shares. These are assessed by the credit committee, which meets weekly to consider applications³. That weekly cycle is the main practical difference: a secured loan can be paid the same day, while an unsecured application waits for the committee.

Top up loans let a member borrow more on an existing loan, a pattern other credit unions also offer¹⁵. Repayments at Willowfield can be made weekly, fortnightly or monthly, directly over the counter at either office, by standing order, or direct from your bank or building society³.

Credit unions more widely offer a range of loan purposes, including home improvement, school costs, credit building and payroll loans, so it is worth asking what a particular credit union will lend for¹⁷. If you are comparing borrowing options, the loans guide explains how unsecured lending works, and the debt guide covers what to do if repayments become difficult.

How loan interest rebates are paid into your shares

A loan interest rebate is a refund of loan interest paid to members who borrowed during the preceding financial year, which credit unions may choose to pay¹⁸. It is one of the ways a credit union returns surplus to the people who generated it.

At Willowfield, the rebate is allocated straight to shares³. So rather than receiving a cheque or a bank transfer, a borrowing member sees the value added to their share balance, where it stays as savings unless withdrawn.

The timing and size of a rebate are not fixed. At one credit union, the percentage is announced each year at the annual general meeting and then paid into members' savings accounts the following morning, and the rebate is a percentage of the interest the borrowing member paid, given back at the end of the year out of the surplus of income¹⁹. Because it depends on surplus, a rebate can vary from year to year and is not guaranteed.

Members also receive a dividend on savings, and the two are often described together as the return on savings through annual dividends and loan interest rebate²⁰. Both come out of the same surplus, so the two figures are connected rather than independent.

Fees and charges

Willowfield states that there are no hidden fees or transaction charges³. The charges that are published are the entrance fee and the minimum savings balance that goes with joining, both set out on its savings page².

That pattern is common across credit unions. One credit union describes its position as having no administration charges or arrangement fees, no hidden extras and no transaction fees²¹. Another states there are no admin fees or charges for paying off a loan early²². The absence of arrangement fees is one of the practical differences between a credit union loan and some other forms of borrowing.

Because the credit union does not publish a rate on this page, and rates change, the figures that apply to a loan today are the ones Willowfield quotes on its own site or in a loan agreement. What can be said from its published terms is how the charging works: interest is charged on the loan, there is no penalty for early repayment, and additional lump sum repayments are accepted with no penalty³. Paying a loan off faster therefore reduces the interest charged, because the balance falls sooner.

Who can join: the common bond area

Credit unions work by all members sharing a common bond, which can be based on living, working, studying or volunteering in a certain area, working in the same industry or for certain employers, or belonging to the same trade union⁷. All credit unions in the UK may only accept members who have a common bond²³.

Willowfield's common bond is that members must live or work within its areas, and its membership page sets those areas out as the BT5, BT6, BT8 and BT23 postcodes¹. That is a tighter area than some credit unions, which can cover a whole city region or several council areas¹⁴.

There is usually a route in for people close to a member. Anyone in the house of a person with a common bond with a credit union can usually join¹⁰. So if you live with someone who qualifies through work or through their own membership, it is worth asking whether that extends to you.

You must be a member of a credit union to get a loan from it, so joining comes first if borrowing is the reason you are looking¹⁰. Some credit unions will lend as soon as you become a member, while others require a period of saving first⁹. Willowfield's own pages do not state a minimum saving period before borrowing, so that is a question for the credit union.

How to join Willowfield Credit Union

Willowfield's membership page describes two routes. You can join online on its website using the online membership form, submitting the requested documentation online or dropping it in to the credit union. Alternatively you can make an appointment at the credit union, when the membership form, a nomination form and a Death Benefit Rider can be completed in person¹.

1. Check that you live or work in one of the BT5, BT6, BT8 or BT23 postcodes¹.
2. Complete the online membership form, or book an appointment to complete the paperwork in person¹.
3. Provide original photographic identification, such as a passport or driving licence¹.
4. Pay the entrance fee and put in the minimum savings balance to open your shares².
5. Complete a nomination form and, if joining in person, a Death Benefit Rider¹.

The joining sessions are usually held every Tuesday and Friday evening between 5.30PM and 7:00PM, though the page notes this was subject to Covid-19 restrictions at the time it was written¹. Opening arrangements can change, so it is worth checking before travelling.

All new members must provide photographic identification such as a passport or driving licence, and only original documents can be accepted as valid¹. Credit unions generally ask for two recent documents to prove identity and address, which can include a passport, driving licence, student or work ID card, bus pass, birth certificate, bank statement or energy bill⁷. Other credit unions ask for two types of identification, one photographic and one showing address, and some list acceptable photographic documents as a current passport, a current photo card driving licence, an electoral identity card, a firearms certificate or a national identity card for non-UK nationals²⁴.

Insurance cover included with savings and loans

Willowfield's insurance page states that the credit union offers all eligible members a Death Benefit Insurance service, and that this is managed by its own insurance company²⁶. It also states that Willowfield provides Life Savings Insurance at no direct cost to members' eligible savings²⁶. The credit union is the point of contact for members on these schemes; the cover itself is provided by that insurance company rather than underwritten by Willowfield.

On the lending side, Willowfield states that loans are insured at no direct cost to the eligible member, subject to terms and conditions³. Its loan advice page repeats that this is at no additional cost to the member, with conditions applying¹⁶.

This mirrors what credit unions commonly offer. Life savings insurance cover is provided on the savings of eligible members, and free insurance coverage on savings and loans is a standard feature of credit union membership²⁷. Some credit unions describe loan protection as free life insurance up to certain limits²⁸. The limits and eligibility conditions vary, and they are set out in the scheme terms rather than on a summary page, so the credit union is the right place to ask what applies to your own balance.

How your savings are protected

Money held with Willowfield is covered by the Financial Services Compensation Scheme, which protects up to £120,000 of the money you have saved across your bank, building society and credit union accounts²⁹. Coverage includes deposits, current accounts and savings accounts⁶. Loans and savings at credit unions are protected by the scheme³⁰.

If you hold savings with more than one bank, building society or credit union that operates under the same authorisation, those balances count together towards one limit. The FSCS publishes a checker that lets you confirm whether a particular firm is covered and which other brands share its protection⁶.

Willowfield appears on the Financial Services Register as Authorised, with permission to accept deposits⁵. It also appears on the Bank of England's list of credit unions incorporated in the UK³¹. Credit unions are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority³².

If something goes wrong with a credit union and you cannot resolve it with the firm, the Financial Ombudsman Service can look at complaints from consumers. Free, impartial help on money problems is available from MoneyHelper, and free debt advice is available from charities including StepChange and National Debtline; the Consumer Council also publishes support routes for consumers in Northern Ireland³⁴.