Cashback Mortgages
Elevate is a bespoke financial services provider in Greater London. We have offices in Beckenham and Bromley and offer a range of mortgage advice for singles, families, self-employed workers and landlords. Our team provide tailored mortgage advice services for an array of mortgage types, including cashback mortgages.
What Is a Cashback Mortgage and How Does It Work?
A cashback mortgage is when a mortgage lender offers customers a financial incentive to take out a mortgage with them, i.e., cashback.
They will either provide the client with a fixed amount of money (e.g., £500) or a percentage of the property valuation (e.g., 0.5%), either at the start of the agreement, during the mortgage or when the mortgage is repaid. This money is typically paid into a current account, which the customer will need to open with the same bank.
If the cashback is paid to the mortgage customer once the mortgage is fully repaid, then if you fail to pay back the mortgage or remortgage to a different lender, you will not receive the cashback. If the cashback is paid out earlier, you might need to pay it back if you remortgage.
Most cashback mortgages use a standard variable rate of interest, but not exclusively.
If you are confused about cashback mortgages or are unsure if they are right for you, why not speak to one of our friendly mortgage advisers? Let’s chat with no obligations!
What Are the Pros and Cons of a Cashback Mortgage?
The main benefit of a cashback mortgage is that it comes with a financial reward. If given at the start of the agreement, this can help cover initial costs like valuations, legal fees and Stamp Duty tax.
One disadvantage of a cashback mortgage is that the cashback usually has to be paid back if you switch mortgages. Another disadvantage is that you may be subject to a higher rate of interest throughout the mortgage term.
The exact terms of a cashback mortgage can differ significantly.
Cashback Mortgages FAQs
What are the conditions of a cashback mortgage?
The main condition associated with a cashback mortgage is that the mortgage must be repaid in full or you will have to repay the cashback. Some other conditions may apply, such as the cashback must be paid into one of the same lender’s current accounts.
Are cashback mortgages suitable for everyone?
Most people can qualify for a cashback mortgage, especially if they are willing to open a current account with the same lender. However, you should consider the amount of cashback you will receive against other mortgage offers with cheaper rates of interest. You may want to consider if you are likely to remortgage and will miss out on or need to repay the cashback.
What’s the typical amount of cashback you can get?
Most cashback mortgages offer a fixed sum between £200 and £500. Some deals will offer a small percentage of your property value, but these are not as common or as widely available.
Why Use an Adviser to Find a Cashback Mortgage?
It can be difficult to calculate if a cashback mortgage is more advantageous than other types of mortgages. If you need help weighing up your mortgage options, a mortgage adviser can provide clarity and make the process less stressful.
Our mortgage broker team is based in Bromley and Beckenham, and help client across London. If you’re looking help finding a cashback mortgage get in touch for friendly mortgage advice today.
Elevate is a bespoke financial services provider in Greater London. We have offices in Beckenham and Bromley and offer a range of mortgage advice for singles, families, self-employed workers and landlords. Our team provide tailored mortgage advice services for an array of mortgage types, including cashback mortgages.
What Is a Cashback Mortgage and How Does It Work?
A cashback mortgage is when a mortgage lender offers customers a financial incentive to take out a mortgage with them, i.e., cashback.
They will either provide the client with a fixed amount of money (e.g., £500) or a percentage of the property valuation (e.g., 0.5%), either at the start of the agreement, during the mortgage or when the mortgage is repaid. This money is typically paid into a current account, which the customer will need to open with the same bank.
If the cashback is paid to the mortgage customer once the mortgage is fully repaid, then if you fail to pay back the mortgage or remortgage to a different lender, you will not receive the cashback. If the cashback is paid out earlier, you might need to pay it back if you remortgage.
Most cashback mortgages use a standard variable rate of interest, but not exclusively.
If you are confused about cashback mortgages or are unsure if they are right for you, why not speak to one of our friendly mortgage advisers? Let’s chat with no obligations!
What Are the Pros and Cons of a Cashback Mortgage?
The main benefit of a cashback mortgage is that it comes with a financial reward. If given at the start of the agreement, this can help cover initial costs like valuations, legal fees and Stamp Duty tax.
One disadvantage of a cashback mortgage is that the cashback usually has to be paid back if you switch mortgages. Another disadvantage is that you may be subject to a higher rate of interest throughout the mortgage term.
The exact terms of a cashback mortgage can differ significantly.
Cashback Mortgages FAQs
What are the conditions of a cashback mortgage?
The main condition associated with a cashback mortgage is that the mortgage must be repaid in full or you will have to repay the cashback. Some other conditions may apply, such as the cashback must be paid into one of the same lender’s current accounts.
Are cashback mortgages suitable for everyone?
Most people can qualify for a cashback mortgage, especially if they are willing to open a current account with the same lender. However, you should consider the amount of cashback you will receive against other mortgage offers with cheaper rates of interest. You may want to consider if you are likely to remortgage and will miss out on or need to repay the cashback.
What’s the typical amount of cashback you can get?
Most cashback mortgages offer a fixed sum between £200 and £500. Some deals will offer a small percentage of your property value, but these are not as common or as widely available.
Why Use an Adviser to Find a Cashback Mortgage?
It can be difficult to calculate if a cashback mortgage is more advantageous than other types of mortgages. If you need help weighing up your mortgage options, a mortgage adviser can provide clarity and make the process less stressful.
Our mortgage broker team is based in Bromley and Beckenham, and help client across London. If you’re looking help finding a cashback mortgage get in touch for friendly mortgage advice today.
Read less
