There are more signs of competition returning to the mortgage market, with Permanent TSB offering a €1,000 incentive to lure borrowers to switch lenders.

According to the Irish Independent, the bank will pay some legal costs for families who switch their home loans if they also transfer their current accounts.

The 'switcher' market has suffered since the financial collapse - but analysts say recovering home sales mean more banks are likely to target new customers in the months ahead.

But switching will only work for those with equity in their homes, where the amount of the mortgage owed is less than the value of the property.

Bank of Ireland has also got in on the action, having announced that it has extended its offer to pay stamp duty for new buyers.

It will refund first-time buyers stamp duty to the value of 1% of their mortgage. The bank has cut its interest rates for new customers, which will now see them start at 3.8%.

Bank of Ireland also announced a new €2.5bn mortgage fund, and an extension of its offer to pay stamp duty for new buyers.

While KBC Bank has also extended its offer to pay €1,000 of legal fees for first-time buyers and those who switch.

Personal finance editor with the Irish Independent, Charlie Weston, told Newstalk Breakfast a number of lenders are trying to entice mortgage holders to their businesses.