Mortgages & Money   Mortgage Guide

Cashback mortgages

At the beginning of your mortgage you receive a lump sum - usually around 5% of your mortgage. The mortgage itself is a standard variable rate.

Pros:

  • Useful if you need capital to cover costs: survey fees, moving costs, stamp duty etc
  • Your cash sum could compensate for any rises in interest rates during the penalty period

Cons:

  • Early Repayment charges could be higher, and apply for a longer period
  • Often the cashback is repayable if you change mortgage within a set period

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