AA in UK links with Bank of Ireland so it can offer mortgages

Breakdown recovery company wants to offer range of fixed-rate loans to its customers

AA said it will offer two-, three- and five-year fixed-rate mortgages and a best-buy four-year fixed-rate product. Photograph: AA/PA Wire

AA said it will offer two-, three- and five-year fixed-rate mortgages and a best-buy four-year fixed-rate product. Photograph: AA/PA Wire

 

Bank of Ireland has linked up with the AA in the UK to allow the breakdown recovery firm to push into the mortgage market by offering a range of products to its members.

The AA said it will offer two-, three- and five-year fixed-rate mortgages and a best-buy four-year fixed-rate product. The range will be fees-assisted and provided through its partnership with the Bank of Ireland’s UK operation, the AA said.

The move comes after it teamed up with the Bank of Ireland last year to launch a number of financial products in the UK market, including credit cards, savings accounts, cash ISAs and personal loans.

Michael Johnson, AA’s director of financial services, said it was launching the products to meet the “needs of its members”.

“Lots of people are currently on mortgage deals where they are spending far more than they need to. This could be down to a combination of high fees and a lack of information, stopping them from switching to a better deal.

“We want to help our members by removing hidden costs and providing simple, straightforward mortgages, with all standard up-front fees included.

Mortgage MOT

As part of the mortgage offer, AA members in the UK will also be given 12 months of home emergency and central heating emergency repair cover, alongside a 15 per cent discount on AA home insurance.

The AA’s Irish operation is now separate from the UK company as it was recently bought out by the Carlyle Cardinal Group for €156.6 million

The AA’s Irish unit, which has been in operation for over 100 years, is led by former Bank of Ireland executive Brendan Nevin. The Irish operation, which employs about 480 people, provides motor breakdown cover for over 300,000 customers and auto, home and travel insurance for more than 225,000 people.