Bank of Ireland is set to re-enter the broker mortgage market in Ireland according to a report in yesterday's Sunday Times.
Bank of Ireland withdrew from the market in 2013 as part of its European Commission restructuring plan and sold its broker platform together with €250m of mortgage loans to Dilosk in 2014. Unlike in the UK, the majority of mortgages are distributed directly with brokers accounting for approximately 15-20% of the Irish market.
In the first half of 2016, Bank of Ireland’s market share of the mortgage market was 26% with Ulster Bank being the biggest gainer in the market with an increase in share from 14% to 18%. Ulster Bank’s increase in share coincided with its re-entry into the broker market in the first half 2016.
At present, Bank of Ireland’s Irish mortgage pricing strategy is led by a fixed rate cash back offering.
According to Davy Stockbrokers, "We forecast a new lending mortgage market of €5.5bn for FY 2016, increasing to €6.5bn in 2017 and €10.2bn by 2020 with potential for this to rise if turnover in the housing market increases from low levels and house price inflation continues to remain at current levels over that period."
Source: www.businessworld.ie