In the past few months Ulster Bank and Permanent TSB have cut the commissions they pay brokers who arrange mortgages.
Shift
Yesterday the head of EBS Building Society’s new broker business said his firm was seeing a significant shift of broker business away from Permanent TSB and Ulster to his new operation, Haven.
Tony Moroney of Haven said: “Brokers who were traditionally loyal to Ulster and Permanent TSB are much more inclined to do business with ourselves.”
He acknowledged that brokers placing business where they get the best commissions is banned under the Consumer Protection Code.
EBS’s Haven is paying 1pc of the value of a mortgage to brokers who generate more than €5m in business a year.
However, Mr Moroney stressed that, in the case of Permanent TSB, other factors came into play for brokers such as the competitiveness of its rates and the speed at which it approves loans. >>>
Brokers accused of chasing commissions
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