Ms Derville Rowland:

Mr. Sibley may want to join in as well. We certainly have a view that a competitive mortgage market that offers plenty of choice for customers in respect of both variable and fixed-rate products of different durations would be in the best interests of consumers.

We recognise that different types of options have a role to play so long as they are clear and properly sold to customers. In that context, cashbacks can play a role. I recognise the Deputy's observation that, while they can be cheaper for customers in the first number of years and, if customers have the wisdom to switch products later, they can turn out to be the cheapest option of all, they can turn out to be more expensive if customers stay on that option in the longer run. In a transparent market where people have the option to switch, though, there is a role to play for cashbacks that are properly sold. Last year, we undertook regulatory work on the advertisements of cashbacks because we saw that they had to be tightened up. We carried out some consultation work - the Deputy will be aware of the transparency around the various mortgage options - and strengthened the framework for the disclosure of cashbacks. We have also changed the framework for telling people on an annual basis about cheaper options that are available to them from each lender. We believe this will result in better options for people and in them saving money. Many customers could save on their mortgage products if they shop around and switch. We encourage everyone to take that course of action.

My final observation on this matter is that this is different from other kinds of intervention. There would be no role for the Central Bank to intervene in cashbacks unless we saw them being missold. We do not see that in the market. We recognise that there can be better value for people if they shop around, but that could be said across the suite of mortgages. There is considerable value for people who go to the trouble of switching. As such, we have strengthened the approach to switching in order to support people in exercising that choice.