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  • Cashback Mortgages

Cashback Mortgages

A cashback mortgage is an arrangement where the lender pays or rebates to the borrower a sum of money (or some other form of financial benefit/incentive) either on completion of the mortgage or at a later stage. The borrower can use the cashback to help pay some of their property purchase costs such as legal and surveying costs, stamp duty, removals charges or home improvements and repairs.

The amount of cashback the borrower will receive depends on the lender’s requirements: sometimes it is calculated as a percentage of the total mortgage advance and will therefore vary in value, or it may be a fixed and non-negotiable amount. Some mortgage providers insist that the borrower already holds (or opens) a current account with them before they qualify for cashback.

Cashback mortgages are usually associated with standard variable rate or tracker mortgages, although the rate of interest may or may not be higher.

As well as applying an early repayment charge, if a cashback mortgage is redeemed before the end of the agreed term, the lender may ask the borrower to repay all or part of the cashback.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the repayments.

Cashback Mortgages

A cashback mortgage is an arrangement where the lender pays or rebates to the borrower a sum of money (or some other form of financial benefit/incentive) either on completion of the mortgage or at a later stage. The borrower can use the cashback to help pay some of their property purchase costs such as legal and surveying costs, stamp duty, removals charges or home improvements and repairs.

The amount of cashback the borrower will receive depends on the lender’s requirements: sometimes it is calculated as a percentage of the total mortgage advance and will therefore vary in value, or it may be a fixed and non-negotiable amount. Some mortgage providers insist that the borrower already holds (or opens) a current account with them before they qualify for cashback.

Cashback mortgages are usually associated with standard variable rate or tracker mortgages, although the rate of interest may or may not be higher.

As well as applying an early repayment charge, if a cashback mortgage is redeemed before the end of the agreed term, the lender may ask the borrower to repay all or part of the cashback.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the repayments.

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Company address: Family First Financial Ltd, 7 Bell Yard, London, WC2A 2JR T: 07951793579 E: mariankaikai@familyfirstfinancial.co.uk

Family First Financial Ltd is an appointed representative of Quilter Mortgage Planning Limited & Quilter Financial Services Ltd., which are authorised and regulated by the Financial Conduct Authority. Quilter Mortgage Planning Limited and Quilter Financial Services Limited are entered on the FCA register (https://register.fca.org.uk/s/) under reference 440718 & 440703.

Family First Mortgages Ltd is registered as a company in England & Wales No: 11432105. Registered Address: 7 Bell Yard, London, United Kingdom, WC2A  2JR.

The guidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Approver Quilter Mortgage Planning Limited & Quilter Financial Services Limited. 10/08/2022

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