Ulster Bank was the biggest winner in the Irish mortgage market in the first half as its share of new business rose, while Bank of Ireland's slice of activity declined, according to an analysis by Davy.

AIB remained the country's leading mortgage lender in the first six months of the year, with a 34 per cent of total market flow of €2.3 billion during the period, according to Diarmaid Sheridan, an analyst at the brokerage. The market share was unchanged compared to the whole of last year.

Bank of Ireland, the second-largest lender, saw its market position fall to 26 per cent from 29 per cent last year, while Ulster Bank's rose to 19 per cent from 14 per cent following its re-entry into the broker channel, Mr Sheridan said.

KBC’s share declined 2 percentage points to 12 per cent, while Permanent TSB’s remained static at 9 per cent.

“Over the course of the first half of 2016 all of the lenders in the Irish market adjusted product offerings as the market became more competitive,” said Mr Sheridan. A move by Ulster Bank to lower mortgage interest rates “is further evidence of the competitive dynamic,” he said.

The Banking & Payments Federation Ireland reported earlier this year that the value of new mortgages drawn down in Ireland rose almost 18 per cent to €1.29 billion from the same period last year.