Credit unions merge and drop fixed rates
Spokeswoman Rhian Hodgetts said the loan rate move would bring NZCU more closely into alignment with First Credit Union. She said borrowers currently on fixed rates would not be affected. “For borrowers on a fixed rate, we will honour that contract.”
NZCU North’s new floating rate will be 6.45%. (To see how this compares with other lenders use our full table of rates)
NZCU North acting chief executive Peter Isles said the merger would likely happen about December 1, after a stand down period of six weeks.
He said it made sense because it was too confusing to have both an NZCU and First Union branch in many centres.
Isles said the move away from fixed interest rates was because of the size of the operation. “We are not big enough to offer fixed loans with any certainty.”
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