People hoping to take out mortgages will now face another charge, if buying through a broker.
The Professional Insurance Brokers Association said this morning it is inevitable that the extra burden on prospective new home-owners would be introduced.
The announcement follows the decision by several banks and other lenders to cut back the commission they pay to brokers who were involved in over 50% of mortgages taken out in Ireland last year.
Following moves by several banks and other lenders to cut back the commission they pay brokers, PIBA, the Professional Insurance Brokers Association, says it has had to re-evaluate how it does business.
They will discuss how to introduce a fee at a conference in Dublin today. This is because lenders are paying them less in commission and reducing the number of products they are offering brokers for sale.
Jack Fitzpatrick, chairman of the Professional Insurance Brokers Association, said his 900 members are suffering the knock-on effects of volatility in the global markets that is affecting banks. He warned this will have repercussions for customers using brokers to get mortgages.
In the last two weeks seven banks have retuned their mortgage offering - either by putting rates up, putting loan to value ratios up, pulling out of the broker channel, or cutting broker commission.
Yesterday AIB and EBS were the latest to make moves. AIB said it is cutting the commission it pays to brokers to 0.5% of the mortgage amount drawn from 1%. The bank said this is due to the continuing high cost of funds in the financial markets and the effect this is having on margins in its mortgage business.