Welcome for Pepper mortgage move

The confirmation from Pepper, an Australian mortgage lender based in Shannon, Co Clare, that it will sell home loans directly, has been welcomed by a leading expert as it boosts hopes that new entrants will shake up the market.

Michael Dowling, chairman of the mortgage committee at the Irish Brokers’ Association, said Pepper’s plans to extend selling home loans beyond its existing exclusive arrangement with brokers will help bring some new competition to the margins of the market here. Pepper said it will take applications online or by phone.

The arrival of new competitors to loosen the grip of AIB, Bank of Ireland, and Permanent TSB on the market has long been anticipated by mortgage brokers, consumer campaigners, and regulators.