What is a Cashback Mortgage?

So many different types of mortgages available, if you are a first-time buyer, you might be scratching your head wondering which mortgage is right for you. Each class has it’s own unique advantages and disadvantages to them, helping you find the right mortgage that’s suited to your circumstances, that’s where to come into play. Our mortgage broker in Manchester team is here to help find you the ‘perfect’ mortgage tailored to you.

Here we will be discussing how Cashback Mortgages work, and how they can help benefit borrowers such as yourself and how this mortgage compares itself to other mortgage options.

If you would prefer to watch our moneymanTV YouTube video on cashback mortgages, feel free to like and subscript to keep up with all the latest content or drop us a question in the comments section. Malcolm is always up to answering questions anything and everything mortgage-related.

What is a Cashback Mortgage?

When you pay off your mortgage/finish your mortgage term, you get some cash back. The sum that you receive back is usually based off a percentage of what you have borrowed, and typically it’s around 1 or 2%. With some Cashback Mortgages, your lender might state a fixed price in the contract. Even if you have a long-term mortgage deal, this amount will not increase over time or change.

Will a Cashback Mortgage benefit me?

As mention earlier Cashback Mortgages come with both positives and negatives; these include:

• Most Cashback Mortgages come with a free property valuation or some fringe benefits. In any case, this could be handy and could end up saving you money in areas you thought you would not.
  
• Cashback Mortgages will suit customers that are looking to borrow lower end mortgages very well. You get some money back plus benefits on the side even though you are paying a lower end mortgage.

As a Mortgage Broker in Manchester, we advise that if you get offered a reasonable percentage on your cashback mortgage, you should consider taking it up as it may be worth it in the long run.

The only real disadvantage to a cashback mortgage is that they usually come with high-interest rates.

Different types of mortgage in Manchester

As we said before, there are lots of different types of mortgage available, and the Cashback Mortgage is not the most popular. However, we still get regular enquiries about them, and they are still worth considering. They are also a perfect back up option if your first choice mortgage deal doesn’t go to plan.

If you want to find out more about the different types of mortgages, then you should speak to one of our specialist mortgage advisors in Manchester. Finding the perfect mortgage for your situation is what we do best; it does not matter if your situation is complicated. We have probably solved a similar case before.

Mortgage Advice in Manchester