Cashback Mortgage

Are you a First Time Buyer? Or do you just need a little extra to afford the improvements on your new property? Then a Cashback Mortgage could be for you.

In simple terms, a Cashback Mortgage is a mortgage where the provider gives money back as an incentive to take out one of their mortgages. The borrower will receive a cash lump sum on completion of the property purchase, many people see this as a good way of borrowing extra money at mortgage rates.

The cash-back can be either a percentage of the amount borrowed (normally 1% to 3% but sometimes it can be as high as 5%), or a fixed lump sum; eg £1000. In addition to the “cash” there are many types of mortgage rates available with a cashback mortgage; these can be variable, discounted, fixed rate, etc. The main drawback of the cask back mortgage is that a repayment charge may apply for some time.

By using a mortgage adviser you can be assured that the advice given wil be right for you as all the advisers are regulated by the FSA. Use the short online mortgage enquiry form to speak with an adviser you will be able to give advice on cashback and all other types of mortgages.

HSBC offers a good range of mortgages so we recommend to have a look at this lender even though cash back mortgages are not the main focus of this bank. You can also find additional information in our mortgage guides section such as the different repayment types.