EBS MOVES TO CURTAIL MORTGAGE SWITCHING - EBS has become the latest financial institution to curb overeager mortgage switchers from availing of multiple cashback offers in the one year, as lenders look to curtail switching activity.
The wholly-owned subsidiary of AIB is now applying a general rule whereby switcher applicants must have been with their previous lender for at least one year before the building society will consider their mortgage application and thus their entitlement to a cashback, says the Irish Times. The move from EBS follows its decision earlier this year to ramp up its cashback offer from 2% to 3% for borrowers staying with the institution for five years, and means that it will now be more difficult for homeowners to avail of multiple cashback deals by switching several times. One poster on askaboutmoney.com, for example, managed to earn €18,000 from cashback deals in one year by switching three times; first to PTSB, then to Bank of Ireland and then to EBS. The move from EBS is in line with other players in the cashback market. Currently there are three lenders offering a percentage cashback on the value of your mortgage - Permanent TSB (2%), EBS (up to 3%) and Bank of Ireland (up to 3%). KBC offers a fixed €3,000 cashback to switchers, AIB gives you €2,000 and Ulster Bank gives €1,500 to switchers to help with legal fees. Those offering cashback deals all now impose limits. Permanent TSB, for example, will not consider you eligible for a switcher cashback unless you’ve been with your previous lender for at least two years, while Bank of Ireland imposes the same limit - one year - as EBS.
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RENT TRAP SWALLOWS HALF OF WORKING FAMILIES' INCOME - Households caught in the rent trap are spending as much as half their income on accommodation.
New research sets out how the housing crisis is hitting private sector renters hardest in and around Dublin. It is hammering low-income families unless they qualify for social housing, where the position dramatically changes. Families in social housing paid 12% of their income in rent on average between 2006 and 2016, but private sector rents cost an average 27%, writes the Irish Independent. This rises sharply to more than half for those renting in Dublin, and among those lower-paid workers who miss out on social housing. Families who manage to buy houses actually spend a lower share of income on housing than renters, the data shows. The stark numbers are from 'Exploring affordability in the Irish Housing Market', published in the 'The Economic and Social Review'. Rent pressure zones will be extended in a bid to keep a lid on rent hikes amid disquiet at the arrival of giant private landlords now locking home buyers out of the market. The Government has decided to extend rent pressure zones, where annual rent increases are capped at 4%, until the end of 2021. The zones in place in Dublin, Cork, Galway, Naas and Drogheda were due to expire at the end of the year.
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CRH MULLS MORE SHARE BUYBACKS AFTER €1 BILLION RETURN - CRH is expected to launch another share buyback programme and announce details later this month.
The construction materials group has completed the €1 billion buyback programme it began last May, which saw it purchase 35.6 million of its shares from investors. In announcing that, CRH said it is considering another buyback round in order to return further excess cash to investors, says the Irish Examiner. "Further share buybacks are under active consideration and details will be announced as part of our trading update announcement on April 24," the group said. That trading update will be published a day before CRH's AGM during which the company will seek allowance to purchase more of its shares. "The group has again sought authority to purchase up to 10% of its shares at the AGM, so another buyback looks likely. Combined with the full year dividend of 72c per share, the group will have returned €1.6 billion to shareholders in the past year," said Davy analyst Robert Gardiner. When CRH issued its 2018 annual results at the end of February, chief financial officer Senan Murphy said buybacks are now "an ongoing part of the way we think about capital allocation going forward".
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PADDY POWER AND BETFAIR MAY FACE WATCHDOG SANCTIONS - Paddy Power and Betfred could face sanctions from the UK Gambling Commission after being told to remove new roulette-style games similar to those on fixed-odds betting terminals (FOBTs).
The bookmakers were accused of trying to cheat new regulations that cut the maximum stake on FOBTs from £100 to £2 after launching the games on Monday, the same day restrictions on FOBT roulette came into force. The commission said the firms had withdrawn the products from shops, while their rival, William Hill, abandoned plans to launch its own after a stern warning from the regulator. It said the firms could still face regulatory action for seeking to undermine the FOBT stake cut, which came about following an investigation by the Guardian. Senior staff responsible for bringing the games to market could also be investigated, the commission said. Richard Watson, executive director for enforcement, said: "We have been absolutely clear with operators about our expectations to act responsibly following the stake cut implementation this week. We have told operators to take down new products which undermine the changes, and we will investigate any other products that are not within the spirit and intention of the new rules." Paddy Power and Betfred had both launched games with multiple similarities to roulette, dubbed Pick 'n' 36 and Virtual Cycling respectively. Betfred's game allows a stake of up to £500, five times what was possible on FOBTs, albeit less frequently.
