IFG boss predicts remortgaging rise

MORTGAGE refinancing will be the next big thing in the Irish financial services market, according to a leading player in the sector.

Richard Hayes, chief executive of the biggest mortgage broker in the country, IFG Group, said lack of competition has held that aspect of the market back.

At present, remortgaging is taking place at the rate of about 20,000 a year.

If the market was more developed that could push the level up to 70,000 transactions a year, he said.

Competition is increasing, with Ulster Bank, backed by Royal Bank of Scotland, offering to pay the full cost of remortgaging, which can amount to €1,000, on behalf of the client.

IFG yesterday reported profit before tax of €2.59 million for the first six months to the end of June, up from €1.15m in the same period last year.

At its core level of activity, pre-goodwill the group made operating profits of €7m, up from €6.2m over the same period last year. The ISEQ listed reported turnover of €44.96m, up from €43.64m in the first half of 2003. Operating profit rose to €4.63m in the first half from €4.01m in 2003.