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Australian lender to join Irish home loan market

THE bombed-out mortgage market could be in line for a boost after Australian lender Pepper said it was looking at offering home loans here.

The move comes as new research shows that the mortgage market is ripe for a new entrant as trust between customers and bankers has been destroyed. And the market is likely to be boosted by the latest property reports showing a shortage of family homes is driving up prices in Dublin.

Pepper, which bought over the mortgages of GE Money last year, said it was looking at mortgage lending.

Chief executive of Pepper Group, Patrick Tuttle, said the company would "consider originating new mortgage business in Ireland, marketing conditions permitting, thereby helping to rebuild a competitive marketplace and broaden the choice of home lending options for Irish consumers".

Financial experts are eager for a new lender to be tempted to enter the market, with banks having pushed up their variable rates despite ECB rate cuts to a record low of 0.75pc.

Irish Independent