Bank of Ireland has decided to cease issuing new residential mortgages through intermediaries in the UK.
"In future distribution will be through our joint venture with the UK Post Office and through our 44 Bank of Ireland branches in Northern Ireland," the bank said in a statement this morning.
The bank said it plans to reduce its UK mortgage book, which stood at £29 billion in September 2008, over an "extended period of time".
It is also planning to cut around £30 million (€33.25 million) in annual costs under a restructuring cost which will result in a once-off charge of around £40 million.
Bank of Ireland said the asset quality of its UK mortgage portfolio "remains robust relative to the market" and in line with expectations in a statement issued in November 2008.