Mortgages - Cashback Schemes

A cashback mortgage is when your mortgage lender will pay you a percentage of the mortgage upon completion, these lump sums are often considered by new homebuyers to help them improve their new home or with furnishings. 

It is important to note that many of these cashback mortgages carry penalties if the mortgage is redeemed early, sometimes the cashback amount also needs to be repayed.  You may not also get a very favourable rate on this type of mortgage product.

Richard says:

First time buyers used to use these for deposits or to clear loans when taking out a mortgage.  Usually long tie ins at variable, not as popular as they once were.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE