Competition in the mortgage market is set to intensify in the near future with the announcement from the Bank of Scotland that its is entering the Irish market. The Bank becomes the first foreign finance house to enter the market here and they claim that their opening rate of under 4 % for variable mortgages will undercut most of the domestic players.
Despite the unprecedented demand for mortgages in recent years, the foreign finance houses have been reluctant to enter the Irish market. That has now changed with the announcement from the Bank of Scotland that it is set to become a player in the already highly competitive mortgage market here. The bank says it aims to challenge the established Irish lenders who have, they claim, some of the highest mortgage margins in Europe. They will be offering variable mortgages at a rate of 3.99%, which they say undercuts most of their competitors by 1%.
Bank of Scotland will offer mortgages directly to customers and through selective mortgage brokers. This is not the bank's first foray into the Irish market: it is already involved in corporate banking though its ownership of Equity Bank. While the Bank say they do not intend to become a player on the high streets of Ireland through a branch network, it is not ruling out offering more financial products in the future.
