Bank of Ireland has completed the sale of ICS Building Society and a book of performing mortgage loans valued at some €223m.
The ICS brand, its distribution system for selling mortgages through independent brokers and the firm’s performing loans have been bought by Dilosk Ltd, a new Irish financial services company based in Dublin.
Bank of Ireland was obliged to sell off ICS and its distribution system by the European Commission as part of the bank's restructuring programme.
The Commission wanted the sale of ICS in order to increase competition in mortgage lending in Ireland.
Talks on the deal were disclosed in June, when an initial agreement was struck for the sale.
It was reported then that Bank of Ireland was to provide €100m in senior finance for the purchase.
Dilosk was authorised as a retail credit firm by the Central Bank on 14 August.
According to the company's website, future mortgage customers will have recourse to the Central Bank over the management of their loans.
"As a regulated entity, all future customers of Dilosk will be afforded all protections under the various regulatory codes applicable to mortgage lending in Ireland," said a statement from company CEO Fergal McGrath on the company’s website.
Dilosk says it will issue confirmation letters to all affected customers regarding the transfer of their mortgage accounts. The letters will include new contact details should any customers have queries.
"My colleagues and I would like to welcome our new customers to Dilosk,” Mr McGrath said in his statement.
“We look forward to providing them with high quality service to meet their needs now and into the future. I would also like to welcome our new colleagues to Dilosk and we wish them every success."
Previous estimates, based on an average mortgage of €200,000, suggest the move will affect between 1,000 and 2,000 mortgage accounts.
As well as purchasing existing loan books, Dilosk says it plans to grow its mortgage business in Ireland by offering new residential mortgage loans.
"The Company will offer mortgages to borrowers seeking to purchase or refinance residential property with a particular focus on residential investment properties (i.e. Buy-to-Let) located in the Republic of Ireland."