Jason Bailey

Expertly compared by Jason Bailey

Products Updated October 13, 2021

 

Mortgages With Cash Back

We’ve searched the whole market place to display all the mortgage products that provide a cash back deal. Compare the cash back mortgages on offer against other products across a range of fixed, variable rate and tracker mortgages.

 

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Start Your Cashback Mortgage Application Today With Lending Expert!

Cashback mortgages, as the name suggests, involve being given a cash payout when you take out your mortgage. This value could be anywhere between 1% or 7% but will depend on the lender you choose. Commonly, the sum is around 5% of your mortgage payment.

Your lender will advance you a lump sum, in cash, when your mortgage is completed, and not before. This amount could be a fixed sum or a proportion of the amount that you are borrowing.

Lending Expert is a cashback mortgage broker and can compare over 1,000 mortgage deals across the UK. Whilst high street banks will typically offer cashback mortgages too, we can help find the best option for you with rates from 1.39% per month, whether you are looking for interest only, fixed, variable, tracker or have a bad credit history.

Start by clicking on ‘Check my Eligibility’ below and enter some basic details about you and your property – and Lending Expert will be able to help you find the best cashback mortgage according to your requirements. 

 

How Do Cashback Mortgages Work?

Cashback mortgages provide the borrower with cash simply on the provision that they take out the mortgage. The exact agreement will depend on the lender. For example, the majority of cashback mortgage deals will give you the cash lump sum before you even need to make your first monthly mortgage repayment. However, some banks will only pay out the funds once the refinance is completed.

The lump sum of cash acts as an incentive and will help the borrower to refinance their home. Depending on the lender, cashback could be as high as 7% of the new mortgage amount and can be used for any purpose.

 

Benefits of a Cashback Mortgage

There are certain benefits that come with taking out a cashback mortgage, including:

  • Help funding – cash back mortgages can help fund the move into your new home or other related costs.
  • Bundles additional funds into your mortgage – many borrowers find it an easy and convenient way to access additional funds in one neat payment.

 

Drawbacks of Taking Out a Cashback Mortgage

  • More expensive – cashback mortgages can result in being a very expensive option. Although it offers a way of accessing additional funds, this bundle deal lacks cost transparency and means that the main beneficiary will be the bank rather than the customer.
  • Not a quick fix – for those in need of extra money, there may be better ways than accepting the cash lump sum which may lead to more expensive repayment in the long run.
  • Inflexibility – should you wish to change or end the cashback mortgage before the end of the term, you will need to repay the cashback, sometimes in addition to a penalty fee.
  • Timing – the cashback is not received until after closing meaning that it does not provide any funds which can help with the home purchase.

 

Can I Get a Cashback Mortgage?

Those looking to apply for a cashback mortgage can expect the following eligibility criteria and key features: 

  • Aged 25 to 85 years’ old
  • Can make mortgages more affordable
  • Minimum income of £25,000 per year
  • Minimum deposit 25% of overall property value
  • Good credit score
  • Low debt-to-income ratio
  • Strong financial record (limited defaults, arrears)

 

Things To Consider Before Taking Out a Cashback Mortgage

Cashback mortgages always come with a fixed interest rate which is typically higher than standard mortgages on the market. The reason for the high interest rate is because the lenders need to cover themselves for any additional money paid out upfront.

For example, a standard 5-year fixed rate on a standard mortgage may incur an interest rate of 3.25%. However, a cashback mortgage for the same loan term period may offer 3.79% with a 1% cash back.

 

 

What Areas of the UK Does Lending Expert Cover as a Cashback Mortgage Broker?

We proudly offer cashback mortgages across the entire UK, including Birmingham, Brighton, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Nottingham, Newcastle, Sheffield and more.

 

How Much Can I Borrow From a Cashback Mortgage?

Speak to an expert today in order to find out how much you can borrow from a cashback mortgage.

For cashback mortgages, your repayment plan will need to allow for not just your mortgage payments, but also enough to cover any of your cashback payments.

 

Is a Cashback Mortgage the Best Option for You?

Cashback mortgages can be a great option for many borrower types, especially due to their multi-purpose and tax-free nature. For those having doubts about whether this is the right type of mortgage for you, make an enquiry in order to speak to our team of expert advisors.

This type of mortgage can make sense for the following situations:

  • Funding closing costs like land transfer tax or legal fees
  • Paying for renovations or furniture
  • Supplementing cash flow in the initial months of home ownership
  • For investment or savings
  • Paying off high-interest debts

 

Cashback Mortgage Providers

There are many cashback mortgages available on the market which is why it is always wise to shop around and ensure that you are receiving the best deal.

At Lending Expert, we compare the cashback mortgage market in order to find the best provider to suit your needs. 

Rather than approaching the lenders directly and dealing with their in-house advisors, working with a mortgage broker will offer impartial advice to get you the best deal on the market.

 

How Do I Compare Cashback Mortgage Rates?

Working with a mortgage broker such as Lending Expert will help you find the best mortgage to suit your circumstances without impacting your credit rating.

Contact us today to speak to an expert and start comparing cashback mortgages.

 

What To Consider Before Getting a Cashback Mortgage

Prospective buyers should always consider the following factors before deciding to take out a cashback mortgage: 

  • Future renovation or house purchases such as furniture.
  • How the interest rate compares to a standard mortgage.
  • Can you afford the agreed monthly repayments.
  • Additional legal fees upon completion.
  • If you need to change mortgage loan terms or break your mortgage term early you will need to repay your cashback as well as other potential penalties.

 

Why Use Lending Expert As Your Cashback Mortgage Broker?

Working with a number of high street banks and specialist mortgage lenders, Lending Expert has access to over 1,000 mortgage deals, and is in the perfect position to help you get approved and get the best rates.

Our eligibility checker is completely free to use and can provide an indicative quote, with no obligation. 

Founded in 2013, we have years of experience working in the secured loan and mortgage market and have helped thousands of customers to date. Our values have always been to find the right product for the right individual at the competitive rate – and we are pleased to offer our services for you today!