Cashback
Some mortgage lenders in the UK offer whats known as a 'Cashback' as an incentive to attract borrowers to take their deals. Cashbacks are a one-off lump sum payment to new borrowers at the beginning of a mortgage. The cashback, lump sum is often marketed as free cash, but it is in fact funded by the mortgage interest paid by the borrower.
The size of the lump sum is dependent on the size of the mortgage and is usually offered only on certain mortgages in a mortgage lender's range. Cashback on mortgages is popular with first time buyers, who put the cashback towards buying furniture or to pay expenses, as these types of buyers often do not have any surplus funds after paying the deposit on their new home.
Remeber you only recieve the 'cashback' sum on completetion of your new mortgage. This lump sum will be specified in your Key Facts Illustarion(KFI). Amounts can vary considerably.
First time buyers and home improvers often go for this type of mortgage, due to financial restraints. Cashback mortgages sound attractive, but beware, lenders are in business to make money , not to give it away for free. You may have to pay a higher interest rate and/or arrangement/booking fee and there may be early repayment charges. Expect to pay a premium for this type of mortgage. You may be better off looking at a traditional type mortgage as the monthly savings you could make could far outweigh the initial cashback.
Don't risk masking the wrong decion. Speak to one of our mortgage experts to make sure your getting the best deal.
At North Mortgages our Mortgage Experts will take care of everything on your behalf. Remember, we source mortgages from the whole of the market, so you know your getting the best deals available and all tailored to suit your personal circumstances.
Call NOW on: 08000 949 595 or contact us today to arrange a Call Back.
