Bank of Ireland (BOI) entered a partnership with the AA in the UK last year, starting off with credit cards and an ISA, though moving into personal loans in the final quarter of last year as well.
It is now being reported that that the AA is set to push into the UK mortgage market, offering 2-5 year fixed rate mortgages with LTVs up to 60% and rates between 2.06-2.87%.
The AA will be including its home and central heating emergency and repair cover for 12 months and members will receive a 15% discount on AA home insurance, though they will have to buy breakdown cover if they don’t already have it.
The mortgages will have no fees attached so are likely to appeal to switchers, though according to the press reports only the 4-year deal at 2.48% could be termed a best buy.
According to Goodbody Stockbrokers, "Offering mortgages was always going to be the main objective of this partnership for BOI. However, we continue to believe that the financial contribution to BOI remains small in the short term."
Source: www.businessworld.ie
