Allied Irish Bank to cap commission to brokers at €1,500
Cost cutting measure: Allied Irish Bank. Photo: Getty Images
Allied Irish Bank (AIB) plans to cap the commission it pays mortgage brokers at €1,500 as the lender seeks to cut costs.
The bank, which pays a 0.5pc commission on mortgages, will cap the payment from September 1, according to a letter sent to brokers.
AIB cut the commission by half from 1pc last year, while other lenders also reduced their payments to brokers as funding costs soared.
In its half-year results this month, the bank said it maintains “an active focus on costs in this difficult revenue generation environment.”
“It’s frustrating,” said Karl Deeter, operations manager at Irish Mortgage Brokers, who estimates that about half of his business goes to AIB.
“From our point of view, the bank is moving job losses into the intermediary channel and away from its own branch network.”
The number of mortgages issued in the second quarter fell 64pc from a year earlier, according to industry figures.
The average mortgage issued to first-time buyers, who accounted for one-quarter of all home loans, was €206,517.
(Bloomberg)
- Dara Doyle
