What is a Cashback Mortgage?

Cashback Mortgage Advice in Nottingham

With a plethora of mortgage types available to home buyers, a First Time Buyer in Nottingham may feel a little overwhelmed when it comes to choosing the right one for them.

Each mortgage types have its own unique purpose each with its own advantages and disadvantages. This is where an experienced Mortgage Advisor in Nottingham can help you with finding the perfect match.

This article will take a look at how Cashback Mortgages work along with the benefits it can have to borrowers and how they compare to other options.

You can also watch our Moneyman TV YouTube video about this topic. This channel features answers to popular mortgage questions, up-to-date news about the mortgage market as well as different cases Malcolm has encountered first-hand.

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Cashback mortgages explained

What is a cashback mortgage?

Cashback mortgages are an option in which you will usually get some cash back at the end of your mortgage term. This sum is usually based on a percentage of what you borrowed and is around 1 or 2%.

When it comes to a cashback mortgage, your lender might specify a fixed price within the mortgage contract. Therefore, whether you are taking a mortgage over a long period of time, the amount will not change or increase over time.

Will a cashback mortgage benefit me?

Below are just some benefits to home buyers:

• Cashbach mortgages will come with additional benefits, like a free property valuation. Whatever the perks are, this could be very helpful with saving mone that you didn’t think of saving.
  
• Through our experience as a Mortgage Broker in Nottingham, cashback mortgage could be very popular amongst customers looking to have a lower end mortgage. You get your money back and the benefits, all while paying for a low-end mortgage.

As an open and honest Mortgage Broker in Nottingham, we would suggest that if the lenders offers you a reasonable percentage on your cashback mortgage, you may wish to consider taking this up because of how beneficial it would be in the future. Sometimes, people decide not to choose a cashback mortgage because the interest rates are usually a little higher.

Different types of mortgage in Nottingham

As mentioned, there are many mortgage options available, with cashback mortgages not being as popular compared to others. Regardless of this, our team do receive enquiries about them, as well as being a good backup choice if your first mortgage deal doesn’t quite work out.

For more information regarding the different mortgage types and your options may be, it could be helpful to contact an expert Specialist Mortgage Advisor in Nottingham. Whatever your circumstances, we will work hard to help you achieve your mortgage goals. We are always up for a challenge!