Compare Cashback Mortgages across the whole market

Save with a cashback mortgage

Considering a cashback mortgage?  If you are looking for a way to reduce the strain on your finances when taking out a new mortgage, compare the most competitive cashback mortgage deals available from UK lenders using the form on this page.

Many lenders offer cash incentives as a way to attract new business, in the form of a cashback mortgage.  In return for completing the set up of the mortgage, the borrower will be given either a flat sum of cash or a percentage of the mortgage amount by the lender.  Taking out a mortgage can be an expensive process, and the cash injection offered by a cashback mortgage can be an enormous benefit in helping to cover solicitors’ charges, valuations and survey fees.  For this reason, cashback mortgages are especially attractive for first-time buyers entering the property market for the first time, and those looking to make home improvements on their new property.

In return for receiving a cash payout from the lender in the form of a cashback mortgage, borrowers will be generally be tied into the lender’s standard variable mortgage rate for a certain period, usually from between 6 months and 5 years.  Lenders’ standard variable rates are not the most attractive mortgage rate options available, as they are usually set at 1-2% above the Bank of England base rate; the fluctuation of this rate can leave borrowers vulnerable in the event of rate rises.  In order to prevent borrowers remortgaging during this period, a penalty will be payable on early redemption of the mortgage until the end of the lock-in period; in addition to this, the cashback package is usually repayable, either in full or in part, if you remortgage before the end of the lock-in period.

In order to get a real benefit from a cashback mortgage, you must compare options available from different lenders on a like-for-like basis.  The size of the cashback package will usually directly correlate to the length of the lock-in period; try to get the best cashback option from the lender with the shortest lock-in, as having to remain on the standard variable rate for an extended period may negate the benefit of the cash lump-sum at the start of the mortgage.  Rather than remaining on the standard variable rate after the lock-in ends, consider your remortgaging options; but be careful to do your sums and ensure that any benefit received from a new mortgage deal will exceed the fees payable on the early redemption of your current mortgage.

To compare the best cashback mortgage options available from UK lenders complete the form and we’ll give you an up-to-date comparison of the current market.  We’ll also put you in touch with an independent mortgage expert to give you the best chance of finding a cashback mortgage to suit your requirements and budget.