Central Bank warns that mortgage cashback deals carry risks

The Central Bank has said there are risks associated with the practice of mortgage lenders offering cashback products to homebuyers, as competition for market share heats up in the mortgage lending market.

The admission came after a member of the Central Bank’s board warned that such cashback incentives were “a way of getting around” Central Bank rules and asked whether “this could potentially distort the market”.

The warning is contained in the minutes ...