Leeds Building Society will target borrowers who already have substantial equity built up in their homes. They will be able to borrow for up to 40 years and can choose to keep down the cost by paying only the interest during the life of the mortgage.

The building society, which has 57 branches in the UK, will not open any outlets in Ireland.

Instead, it will sell its mortgages through brokers who are members of the Independent Mortgage Advisers Federation or IFG Mortgages.

The move "illustrates that there is still an appetite out there from overseas lenders in taking a slice of the Irish market", said IMAF president Michael Dowling.

The most recent arrivals have tended to concentrate on niches overlooked by the Irish banks, such as mortgages for home owners with blemishes on the credit records or equity release loans for older people seeking to supplement their pensions.

But Leeds Building Society will target the mainstream mortgage market, bringing the total number of lenders to 13.

The top four, Bank of Ireland, Permanent TSB, AIB and Ulster Bank/First Active, control about 70% of the 110bn market between them.

The arrival of Leeds brings the number of UK lenders operating in Ireland to three.

The other two are Halifax Bank of Scotland and Royal Bank of Scotland, which owns Ulster Bank and First Active.