Mr. Jim Brown:

The standard variable rate that we charge in Northern Ireland reflects the market, our cost of funds and our costs of operating in that market. The rate is 4.0%. We also have a loan establishment fee for any new loans in Northern Ireland of £995. In Ireland our standard variable rate is 4.5% and we do not have any establishment fee. That said, the standard variable rate reflects the cost of providing variable rate mortgages in the market. It comprises our cost of funds, our operating costs, the costs of credit and the costs in terms of remediating customers who are non-performing as well. Our cost of funds is approximately the same as for the other banks in this market.

The cost of deposits in Northern Ireland is approximately half what it is in the South. There is a higher cost for funds paid to customers in the Republic of Ireland.