Ulster Bank returns to broker market

Ulster Bank is looking to beef up competition in the residential mortgage market with its decision to return to the broker channel.

On Tuesday the bank, which is owned by Royal Bank of Scotland, said its mortgages will now be available through 40 brokers across the country, in a move which it hopes will provide "a significant boost" to its lending throughout the year.

Jim Ryan, head of branch banking at Ulster Bank, said that by re-entering the broker market, the bank is "taking our best ever mortgage rates direct to customers and offering them even more choice when it comes to discussing their mortgage options with Ulster Bank."

It’s one of a number of initiatives offered by the bank, which also includes making a € 1,500 contribution towards new mortgage customer’s legal fees, and the introduction of 10 mobile mortgage managers, who will travel around the country to meet potential mortgage customers at a place that suits them.

However, while the bank has announced reduced rates in recent months, its standard variable rate remains high at 4.4 per cent APR.

Brokers across the country must be pleased with the move from Ulster Bank, as it will increase their mortgage offering, and it's understood that the bank will offer brokers commission of 1 per cent of the value of the mortgages. Last autumn AIB increased the commission it pays brokers to 1 per cent from 0.75 per cent for arranging mortgages via its Haven subsidiary.

Bank of Ireland has yet to mark its return to the broker market.