What is a cashback mortgage deal?
Lenders may offer a ‘cashback’ incentive when homebuyers take out their mortgage product. This type of mortgage deal works by giving you a percentage of the loan back when you first borrow the money.
Pros and cons of cashback mortgages
This is obviously an attractive sounding offer, but all the terms and conditions should be checked, and sometimes it’s only small amounts given. You may also find the interest rate is higher, or there are additional charges involved. However, it may be useful for those who want a lump sum of money to use to get a few essentials when they’re moving home. It’s only available with certain mortgage types, and offers can differ depending on the lender.
Remortgaging your home may be the best thing to do if you want a better deal from another lender. If you would like a cashback mortgage deal, shop around to see what you can find, and get some professional support.
When looking to apply for any type of mortgage, getting professional, impartial advice can help you get the best mortgage product for you. Find a trusted mortgage adviser in your local area here.