IL&P to cut commission to brokers
Reducing commission: IL&P. Photo: Bloomberg News
Irish Life & Permanent plans to reduce the commission it pays mortgage brokers to help cut costs and offset the impact of the property slump.
The bank will trim its commission to 0.5pc of transaction values as of January from 0.8pc currently, spokesman Ray Gordon said by phone today.
“We remain committed to the broker channel, but it must be competitive,” Gordon said.
The decision comes two months after AIB started capping the commission it pays mortgage brokers at €1,500. Irish Life increased the rate it charges on standard variable home loans by 0.5pc in July.
“This is a double-edged sword,” Karl Deeter, Operations Manager at Irish Mortgage Brokers, said by e-mail.
“On one hand, it is a 38pc loss of income for brokers when placing businesses with Permanent TSB, on the other it is a bank taking the necessary steps toward profitability.”
Irish Life fell as much as 77.3 cents, or 14pc, to €4.60 euros in Dublin, and traded at €4.72 12:27pm.
- Dara Doyle and Louisa Fahy
© Bloomberg
