What Happened to ICS Mortgages in Ireland
ICS Mortgages was once an active mortgage lender in the Irish market, part of the Bank of Ireland Group. In 2013, ICS stopped writing new mortgage business and entered a period of wind-down. Existing mortgages remained with ICS while the bank gradually exited the Irish lending market.
In 2019, the ICS mortgage book was sold to a non-bank entity. Today, these mortgages are serviced by Dilosk DAC, a Dublin-based loan servicing company. Dilosk manages thousands of legacy ICS mortgages but does not offer new lending products or mortgage switches to existing customers.
For borrowers with ICS mortgages serviced by Dilosk, this means:
- Your mortgage terms remain unchanged unless you take action to switch
- You cannot get a mortgage top-up or additional products from Dilosk
- Rates have not followed market downturns seen with active lenders
- Customer service is handled by Dilosk, not a traditional bank branch network
Who Is Dilosk DAC
Dilosk DAC operates under Central Bank of Ireland regulation as a non-bank mortgage servicer. The company’s sole function is managing the repayment and administration of legacy mortgage portfolios, including the former ICS book.
What Dilosk does:
- Collects monthly mortgage payments
- Manages arrears cases and restructuring for existing loans
- Handles customer queries via phone and email
- Issues annual statements and interest certificates
What Dilosk does not do:
- Offer new mortgages or lending products
- Provide mortgage top-ups or equity release
- Operate physical branches for face-to-face service
- Compete on rates with active market lenders
Dilosk’s business model centres on servicing, not origination. This structure is common when mortgage portfolios are sold to investment funds or non-bank entities focused on managing existing debt rather than growing a lending business.
Current ICS Mortgage Rates Under Dilosk
Because Dilosk does not compete for new business, legacy ICS mortgage rates remain significantly higher than current market offerings. As of November 2026, typical ICS variable rates range from 4.5% to 5.5%, while active lenders offer variable rates as low as 3.2% to 3.8%.
Rate Comparison: ICS Legacy vs Active Market
| Mortgage Type | ICS/Dilosk Rate (Est.) | Active Market Rate | Potential Saving |
|---|---|---|---|
| Standard Variable | 4.8–5.5% | 3.2–3.8% | 1.0–2.3% |
| Tracker (ECB + margin) | ECB + 1.5–2.5% | Not available new | N/A |
| Fixed Rate (legacy) | 4.2–5.0% | 2.8–3.5% | 1.4–2.2% |
Example monthly saving:
On a €250,000 mortgage with 20 years remaining:
- At 5.2% (ICS legacy rate): €1,680 per month
- At 3.5% (active lender rate): €1,430 per month
- Monthly saving: €250 | Annual saving: €3,000
Over five years, switching could save €15,000 in interest payments. For borrowers with larger balances or longer terms remaining, savings increase proportionally.
Why ICS Rates Remain High
Several factors explain why legacy ICS mortgages under Dilosk carry higher rates:
No competitive pressure: Dilosk does not need to attract new customers. Without competition for market share, there is no incentive to reduce rates to match active lenders.
Cost recovery model: Non-bank servicers often price loans to cover servicing costs and generate returns for investors who purchased the mortgage book. Lower rates would reduce profitability.
Customer inertia: Many borrowers remain unaware they can switch or assume the effort is too high. Low switching rates allow Dilosk to maintain higher margins without significant customer loss.
Tracker mortgage constraints: Some ICS borrowers are on tracker mortgages tied to the ECB rate. These rates follow the European Central Bank base rate but include a margin set when the loan originated. While trackers are typically favourable, some legacy ICS trackers have higher margins than newer tracker products offered before 2008.
Can You Switch Your ICS Mortgage to Another Lender
Yes. Switching your ICS mortgage to an active lender is possible and often financially beneficial. However, the process requires meeting current Central Bank lending rules and the new lender’s credit criteria.
Switching Eligibility Requirements
Central Bank rules apply:
- You must meet loan-to-value (LTV) limits if borrowing more than the remaining balance
- Switching the exact outstanding balance does not require meeting LTV rules
- Income and affordability tests apply if you are increasing the loan amount
Lender-specific criteria:
- Minimum credit score (typically 650+, though thresholds vary)
- No recent missed mortgage payments (most lenders require 12 months clean payment history)
- Property valuation meets lender standards (property must not have significant defects)
- Age limits (some lenders cap the borrower’s age at mortgage maturity)
Fixed rate considerations:
If your ICS mortgage is on a fixed rate, you may face an early repayment charge (ERC) if you break the term before it expires. Calculate whether the ERC cost is offset by monthly savings from the lower rate. In many cases, even after paying the ERC, switching saves money over the remaining mortgage term.
Steps to Switch Your ICS Mortgage
1. Request a redemption statement from Dilosk
Contact Dilosk to obtain a redemption figure showing your outstanding balance, any breakage fees, and the exact amount required to clear the mortgage.
2. Compare lenders and rates
Use a mortgage broker or compare rates directly from active lenders such as AIB, Bank of Ireland, Avant Money, Haven, and permanent tsb. Focus on lenders offering competitive rates for your LTV and term.
3. Apply for mortgage approval
Submit an application to the new lender. You will need:
- Proof of income (payslips, P60, tax returns if self-employed)
- Bank statements (usually six months)
- Property details and current mortgage statement
- Identification and proof of address
4. Arrange a property valuation
The new lender will require a professional valuation. If your property value has increased since you bought, your LTV improves, potentially unlocking better rates.
5. Complete legal process
Instruct a solicitor to handle the legal transfer. The new lender pays off your ICS mortgage with Dilosk, and you begin repayments under the new terms.
6. Close your ICS account
Once the redemption payment clears, confirm with Dilosk that the mortgage is closed and request final documentation for your records.
Common Switching Challenges for ICS Borrowers
Property valuation risk:
If your property has declined in value since purchase, your LTV may have increased. This can limit your options or result in higher rates from new lenders. Consider whether recent renovations or local market improvements support a higher valuation.
Self-employed income:
Dilosk may have been more lenient with income verification years ago. Active lenders in 2026 require detailed financial accounts, tax compliance certificates, and evidence of consistent earnings. Self-employed borrowers should prepare thoroughly and consider a broker with experience in self-employed applications.
Age at maturity:
Some lenders cap the borrower’s age when the mortgage ends (typically 70 to 75 years). If you are older or have a long remaining term, not all lenders will approve your switch. Brokers can identify lenders with more flexible age policies.
Early repayment charges:
Breaking a fixed-rate ICS mortgage incurs a fee, often several thousand euros. Calculate the breakeven point: how many months of lower payments are needed to recover the ERC cost? If you save €250 monthly and the ERC is €3,000, you break even in 12 months.
Negative equity (rare in 2026):
If you owe more than your property is worth, switching becomes difficult. Most active lenders require positive equity. In this scenario, overpaying your existing mortgage to reduce the balance below your property value may be necessary before switching.
Alternatives to Switching Your ICS Mortgage
If switching is not viable immediately, consider these options:
Overpaying Your Mortgage
Most ICS mortgages serviced by Dilosk allow overpayments without penalty (check your terms). Paying extra each month or making lump sum payments reduces your balance faster, lowering total interest paid.
On a €200,000 mortgage at 5.2% with 20 years remaining, overpaying €200 monthly saves approximately €30,000 in interest and clears the mortgage four years earlier.
Requesting a Rate Review
Contact Dilosk to request a rate reduction. While Dilosk is not obligated to offer better rates, demonstrating your intention to switch may prompt a discretionary rate adjustment to retain your business. Success with this approach is inconsistent, but some borrowers report modest reductions after formal requests.
Tracker Mortgage Protection
If you hold a legacy ICS tracker mortgage, protect it carefully. Tracker mortgages link directly to the ECB rate and are no longer available to new borrowers. Even if your tracker margin is higher than ideal, the automatic rate adjustments as the ECB changes policy provide long-term value.
Switching off a tracker to a fixed or variable rate means losing this feature permanently. Only consider switching if the rate differential is substantial and fixed rates are significantly lower for an extended term.
Dilosk Customer Service and Support
Dilosk operates primarily through remote channels. Borrowers manage accounts via:
Phone support:
Dilosk’s customer service line handles payment queries, statement requests, and general account questions. Wait times can be longer than traditional banks, particularly during peak periods.
Online account access:
Some borrowers have access to an online portal for viewing statements, payment history, and outstanding balances. Functionality is more limited than full-service bank apps.
Email and post:
Formal requests (redemption statements, rate reviews, restructuring applications) are often handled via email or letter. Allow extra processing time compared to active lenders.
No branch network:
Unlike AIB or Bank of Ireland, Dilosk does not operate physical branches. All interactions are remote, which can be challenging for borrowers who prefer face-to-face service.
Should You Stay with ICS/Dilosk or Switch
Switch if:
- Your rate is more than 0.5% above the best active market rate
- You have clean payment history and meet Central Bank lending rules
- Your property value supports a competitive LTV
- You plan to stay in the property for at least three more years (to recover switching costs)
Stay if:
- You hold a low-margin tracker mortgage (ECB + less than 1%)
- You are in negative equity and cannot meet LTV requirements
- You face significant early repayment charges and plan to repay the mortgage within 1-2 years
- Your credit history or income situation makes approval with a new lender uncertain
For most ICS borrowers on standard variable rates above 4.5%, switching is financially advantageous. The effort required—gathering documents, applying, instructing solicitors—is offset by thousands of euros in savings over the remaining mortgage term.
Legal Protections for ICS Mortgage Holders
Even though Dilosk is a non-bank servicer, ICS mortgage borrowers retain full legal protections under Irish law:
Central Bank Consumer Protection Code:
Dilosk must comply with the Consumer Protection Code, ensuring fair treatment, transparent communication, and appropriate handling of arrears cases.
Mortgage Arrears Resolution Process (MARP):
If you experience payment difficulties, Dilosk must follow MARP procedures, including assessing alternative repayment arrangements before pursuing legal action.
Data protection:
Dilosk handles personal financial data under GDPR regulations. You have the right to access your data, request corrections, and understand how information is used.
Complaints process:
If you are dissatisfied with Dilosk’s service, escalate complaints internally first. If unresolved, refer the matter to the Financial Services and Pensions Ombudsman (FSPO) for independent review.
Tracker Mortgages and the ICS Legacy
Some ICS mortgages originated before 2008 are tracker products. These mortgages follow the ECB rate plus a fixed margin (e.g., ECB + 1.5%). Tracker mortgages became controversial during Ireland’s financial crisis when some lenders improperly moved customers off tracker rates.
If you hold an ICS tracker mortgage, verify the terms are correctly applied. Check:
- Your mortgage documentation to confirm the agreed margin
- Monthly statements showing the ECB rate and applied margin
- Any correspondence from ICS or Dilosk regarding rate changes
If you believe your tracker was incorrectly withdrawn or the margin changed without proper notification, contact Dilosk and consider seeking advice from the FSPO or a solicitor. The Central Bank’s Tracker Mortgage Examination uncovered widespread issues, and some borrowers received compensation.
Future Outlook for ICS Mortgages Under Dilosk
The ICS mortgage book will gradually reduce as borrowers complete repayments, switch to other lenders, or sell properties. Dilosk’s role is to manage this declining portfolio rather than grow it.
Potential developments:
- Further portfolio sales: Dilosk or its investors may sell portions of the mortgage book to other servicers or funds. Borrowers would be notified of any change in servicer.
- Increased switching activity: As awareness grows and rates remain high, more ICS borrowers are likely to switch, accelerating the book’s decline.
- Rate adjustments: Competitive pressure from switching may prompt selective rate reductions for borrowers at high risk of leaving, though this remains uncertain.
For borrowers, the key takeaway is clear: take control of your mortgage. Whether through switching, overpaying, or negotiating, proactive steps almost always improve your financial position compared to accepting the status quo.
See also: Switching Your Mortgage in Ireland | Best Mortgage Lenders in Ireland | Fixed vs Variable Rate Mortgages | Mortgage Rates Ireland 2026 | Breaking a Fixed Rate Mortgage