A cashback mortgage is one where a lump sum is paid
to the mortgage applicant on completion of the mortgage.
It is a scheme that is offered alongside other mortgage
products. The cash can be used as you wish.
Pros and cons of a cashback mortgage
Advantages: The additional cash can be useful at a time
when you may have little spare cash. The money can be used
to pay solicitor's fees, buy furnishings, carpets etc. You
could even put the money into a savings account and use
it to assist in making mortgage repayments in the first
few months or years.
Disadvantages: Early redemption penalties will almost certainly
apply. This means you will be unable to change your mortgage
during the 'early redemption penalty period' without paying
back the lump sum received, or paying a fee, which may be
up to the value of six months mortgage repayments. Consequently,
you may end up being trapped in a mortgage with an uncompetitive
rate. You may have to pay an application fee when arranging
your cashback mortgage.
Here we have compiled a collection of websites we feel
may be of use to our visitors. If you feel you have a website
you would like to submit to our resources pages please click
here.
