Bank of Ireland has refused to comment on growing speculation it is planning to sell off its UK-based mortgage lending division, Bristol & West.

Reports have suggested the mortgage subsidiary is the subject of a bid by British financial services tycoon Clive Cowdery.

Mr Cowdery recently pulled out a €505million investment plan for Bradford & Bingley.

It has been reported that a Bristol & West deal could reach between €800m and €1.4bn.

However, a Bank of Ireland spokeswoman said it did not comment on speculation.

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Newspapers have suggested Mr Cowdery and his team had approached a number of smaller banks and building societies and was likely to contact Bank of Ireland in September.

Industry insiders have said that while Bank of Ireland is not actively seeking to sell Bristol & West Mortgages, given the current market situation, such an offer may seem attractive.

The bank has already predicted earnings could fall in the coming year, which has been attributed to the slowdown in the Irish, UK and US economies taking effect.

However, Bristol & West could prove a challenging investment for any firm, as it currently serves the uncertain buy-to-let sector.

The subsidiary currently accounts for around €22bn of Bank of Ireland's €34bn UK mortgage book.

Bristol & West mortgage products are sold through intermediaries.

Last month Bank of Ireland and Bristol & West pulled their entire mortgage ranges and replaced them with higher rate products.

Product ranges were set at higher rates and lower LTVs (loan to value).

(PR)