Timing is everything in a rapidly changing market. Under pressure after Bank of Scotland's mortgage rate cuts, First Active is expected to reveal its plans to cut costs and restructure its operations in the next week or two.

But in the time it has taken to develop its new strategy the market has changed again.

Now Ulster Bank is in play raising the prospect of intensifying competition if the new owner gains significant market scale and decides to target First Active's core mortgage and savings markets.

And Bank of Scotland is actively looking at entering the Irish savings market using its direct line operation.

This should worry not just First Active but many of the existing deposit takers whose margins would suffer.