We regularly receive enquiries from customers regarding a variety of mortgage types. One we come across every now and again is a cashback mortgage.
In this article, it is our goal to answer all the main questions we hear from customers regarding the topic of cashback mortgages. These include whether or not the mortgage type will benefit you in the long or short term, as well as how it may compare to other mortgage options.
Cashback mortgages are a rather self-explanatory type of mortgage available to applicants. After you have finally paid off your mortgage or once your mortgage term has come to an end, you will receive some cash back in your pocket.
The amount that you can get back is usually a percentage of what you have borrowed, say around 1 or 2%. Some lenders will prefer to have a fixed price written in the contract, meaning even with a longer term, your amount won’t change.
Cashback mortgages tend to have both advantages and disadvantages. For example, Cashback Mortgages may also bring along with them a free property valuation or some fringe benefits.
Cashback Mortgages are generally quite attractive mortgage types to customers that are borrowing much smaller mortgages. You will make back some money plus be granted some additional benefits on the side.
If your mortgage lender offers you a reasonable percentage on your Cashback Mortgage, it is worth considering, as this could be a benefit to you in the long term.
One of the main disadvantages to a cashback mortgage is that they have also been known to have rather high interest-rates with them as well.
Compared to the other types of mortgages that are available, Cashback Mortgages are often not the most popular mortgages to go with, though they are absolutely worth considering.
We still see come across customers at Harrogatemoneyman every so often who are looking for Cashback Mortgages, and they are a great backup option if you perhaps don’t quite meet the criteria for other mortgage types.
If you would like to receive a much more in-depth viewpoint, be sure to book your free mortgage appointment online. Here you will be able to benefit from Specialist Mortgage Advice in Harrogate.
A member of our brilliant team of mortgage advisors in Harrogate will be able to take a look at your case and determine whether or not this is the right option for you, comparing everything else that may be available to you.