CASHBACK MORTGAGES

A Cashback Mortgage is one where the lender pays the borrower a sum of cash on completion of the new mortgage or remortgage. This sum or 'Cashback' is either a fixed specified amount typically £250 to £1,000, or as a % of the amount borrowed schemes from 1% to 11% Cashback are currently available.

The Cashback can be used for any purpose by the customer, and is often used to carry out home improvements, purchase furniture or to perhaps buy a new car.  Purchasing a home can be an expensive business, so this initial cash injection can be of great benefit and importance.

Although Cash Back mortgages offer an obvious initial short term advantage to borrowers in the form of a cash injection, this type of mortgage often has a 'tie in' period for a number of years, whereby the Cashback must be repaid in part or in full should you decide to pay off your mortgage or move your mortgage to another lender (as an early repayment charge).  You may therefore have to pay the lender's Standard Variable Rate for a specified period of time.

For a FREE, no-obligation quotation, contact:
First Mortgage Solutions on 0808 155 4328 or via our online contact form