What ia Cash Back Mortgage?
A cash back mortgage is one where a cash lump sum is paid to the mortgage applicant on completion of the mortgage.
There are two main ways a cash back mortgage can be offered by a mortgage lender.
Cash Back Mortgage with a lenders standard variable rate SVR
A cash back mortgage with a lenders standard variable rate, this can offer a large cash back on completion of the mortgage. This cash back can be as high as 6% of the new mortgage amount and can be used for any purpose.It is worth noting that the cash back is often paid 2 to 3 weeks after the mortgage has completed, making it difficult to use for a deposit on a house purchase.
Cash Back Mortgage offered along side another mortgage product
A cash back mortgage offered along side another mortgage product such as a fixed rate or discount rate scheme, these cash backs are usually a small amount to cover say a refund of the mortgage valuation or contribution towards legal costs for the house purchase/remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage
