Buy-to-let mortgage provider Dilosk is to enter the owner-occupier market under the ICS brand with what it says is the lowest variable rate on the market.

For a mortgage where the loan is less than 50% of the value of the home, it is offering a rate of 2.7%.

It is also offering three and five year fixed loans at 2.55 and 2.6% respectively.

"What the customers are looking for is the best rate on the market and that is what we're offering," Fergal McGrath CEO of Dilosk, trading as ICS Mortgages said.

"We have modest expectations. We're entering a bigger market in the owner-occupier space. We expect to take 15% of the intermediary mortgage market."

ICS is entering the owner-occupier space at a time when interest rates at an ECB level are at rock bottom and could go even lower in the coming months.

However, the average variable rate here is still well above the euro zone average.

"It's hard to predict which way rates will go," Mr McGrath said.

"Fixed rate generally suit first time buyers who like certainty. Variable rates are for those who think rates might fall. It's horses for courses."

Fergal McGrath said the bank would not be offering inducements such as cash back offers.

"We've listened to customers. The message was to keep it simple and that's what we're doing. "We're a niche mortgage lender. Mortgages is all we do. We have a lean model which enables us to pass cost savings on to customers," he added.

"The arrival of ICS to the residential mortgage market can only mean good things for borrowers – be they First Times Buyers, Next Time Buyers or Switchers," said Joey Sheahan, Head of Credit at

"Not only are the rates offered by this new lender competitive, but this additional competition will force the hand of other lenders in the market – resulting in better value for mortgage holders."

"While it may take a few months for other lenders to catch up, I'd imagine that by the time the New Year rolls round, which is generally one of the busiest times in the mortgage market, we’ll see a mortgage price war in full flight."