Cashback Mortgages Explained

A lender agrees on completion of the mortgage to provide you with a set percentage of amount borrowed as a cash payment.

• Anywhere between 1% and 12% cashback has been available.

• Normally a lender will require a non-refundable booking fee in advance to reserve this option.

• Borrowers will be required to remain on the lenders variable rate of interest for a pre-determined period of time. This is usually linked to the amount of cashback provided.

• Cash payment may be useful to those utilising their savings as a deposit, to enable them to afford fixtures and fittings for the property.

• Possibility for first time buyers to use to enable them to obtain a mortgage when they are unable to raise a deposit other than by short term finance arrangements.

• Associated early repayment charges are restrictive.

• Exposure to interest rates.

• A cash back mortgage is the most suitable option in a number of circumstances the most common being those identified below.

  • First time buyers.

  • Individuals utilising short-term finance arrangements to provide their deposit.

  • Borrowers confident that the mortgage rate is likely to fall.

So, why use a mortgage broker?

Because we will help you save your time, your effort and your money!