Exit of Ulster Bank and KBC 'already chilling competition as mortgage customers turn away'

The remaining big three banks, which offer costlier mortgage rates, are already increasing their grip on the market, mortgage brokers warn

Mortgage brokers warn of further concentration in mortgage lending with AIB, Bank of Ireland, and Permanent TSB increasing their grip, even before Ulster and KBC have transferred a single mortgage.

The shock decision by Ulster Bank and KBC to close their doors is already having a "chilling effect" on competition in the Republic's mortgage market as home loan borrowers turn to much more expensive rivals, leading brokers have warned. 

Ulster and KBC, which offer among the cheapest mortgages, sent the banking market into crisis after they announced that they would pull out in a phased withdrawal over a number of years.