Cashback Mortgage

What is a cashback mortgage?

A cashback mortgage provides buyers with the facility to borrow money to buy a home, as wel as the facility to get cash back at the start of the mortgage loan.

The cashback mortgage facility is designed as an incentive to borrow with a particular mortgage lender. The cashback money is typically used to help with the expenses associated with a home move - such as the cost of furniture, or removal costs.

The amount of the cashback on the mortgage will be determined by factors such as the amount borrowed and the amount of deposit provided. Generally, the more equity that you hold in the property, the bigger the cashback.

The cashback does however come with a twist. Naturally, the mortgage lender will not want to lose out on their initial generosity. You can therefore expect to have extended penalties to switch the loan, and the cashback will need to be repaid during the early years if the mortgage is redeemed. Generally, the mortgage rate will be higher than standard mortgages, but this facility could be attractive to first time buyers.

If you are considering a cashback mortgage, please contact us.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.