Cashback Mortgages Explained
There are a wide variety of different mortgage types available, so many that a first time buyer in Manchester might be left scratching their head, as they try to figure out which one is actually right for them.
Each mortgage variation has its own advantages and disadvantages to them, which is where a mortgage broker in Manchester comes into play. They can review your circumstances to look and find the perfect mortgage option that is out there, for you.
Here we will be taking a look at how cashback mortgages work, how they can help benefit borrowers such as yourself and how this mortgage compares to other mortgage options that might be out there for those looking at first time buyer mortgages in Manchester.
What is a cashback mortgage?
A cashback mortgage is where you receive some cashback, once your mortgage term is paid off and has concluded. You will typically receive a percentage back of what you have borrowed. We typically see this percentage at 1-2%.
With some cashback mortgages, you might find that your mortgage lender will set a fixed price in your mortgage contract. Even if your mortgage deal is long-term, this amount will not change, meaning it will not decrease, but it will also not increase either.
Will a cashback mortgage benefit me?
As discussed, a cashback mortgage, much like the other mortgage options that are out there, will have both pros and cons for home buyers.
For example, most cashback mortgages will typically come with a free property valuation or some fringe benefits. This means it could be quite useful for you and help you to save money in some areas where you may not think you would.
Additionally to this, cashback mortgages can also work for customers who are looking to borrow much smaller mortgages, as you are able to get some money back and have some benefits, despite not borrowing a larger amount.
As an open & honest mortgage broker in Manchester, we advise that if you are offered a reasonable percentage on your cashback mortgage, you should consider taking it up as it may be worth it in the long run for you.
The only major disadvantage to a cashback mortgage is that they typically will come with higher interest rates.
Different Types of Mortgage in Manchester
As we have mentioned previously, there are lots of different types of mortgages that are available. You can learn more about them in our article under the same name.
Cashback mortgages are not always the most popular option, though we still find ourselves receiving enquiries about them and they are definitely worth considering. They are also a great choice in back-up plans, if your first mortgage choice doesn’t go the way you’d like it to.
If you want to find out more about the different types of mortgages, then you should definitely get in touch with us for specialist mortgage advice in Manchester and speak with one of our trusted mortgage advisors in Manchester.
It is the job of our expert team to find the perfect mortgage solution for you. No matter what your situation is, we have likely come across something similar to yours throughout our time in the mortgage industry.
We will use our experience to help find you the most suitable mortgage option, mortgage deal and mortgage outcome for you, based on both your personal and financial circumstances.
Date Last Edited: November 11, 2024
