The AA’s financial services arm has signed a 10-year deal with Bank of Ireland UK and plans to enter the mortgage market next year.
AA Financial Services, a division of automotive breakdown organisation the AA, and BoI UK confirmed the arrangement yesterday and plan to launch a new AA-branded mortgage product in the second quarter of 2016.
A spokesman was unable to confirm the loan terms of the firm’s mortgage offering or which part of the market it plans to target.
AA Financial Services managing director Kathryn Thomas says: “[The deal with Bank of Ireland UK] offers scope for the AA to expand into new financial services arenas such as mortgages.
“The new partnership creates a stable new platform within a diverse and fragmented market place that will allow the AA to compete with a long-term, strategic UK banking proposition.”
Bank of Ireland UK already has an arrangement with the Post Office whereby it provides the funding for the firm’s mortgage range.