UK Mortgages : Cash Back Mortgages

Cash back Mortgages -upon completion of the property purchase, you receive a lump sum of cash , this cash could be a percentage of the mortgage or a fixed amount.

Cash back Really?

This is a bit misleading as you do not actually get your "cash back" instead an additional loan is added onto the mortgage although usually this can be paid of over a shorter period of time than the actual mortgage, but for first time buyers who need to make their homes a comfortable place to go back to after work, this cash incentive is too good to resist sometimes.

Lenders

The draw back of this mortgage package is that you may find yourself tied to one lender at their rate of interest for 6 years maybe or you may be charged a redemption penalty for moving your mortgage.

If you are thinking of investing in new home furnishings or need some home improvements then a Cash back Mortgage is for you.

Cash Back Mortgage applications have risen more than 200 per cent during the month of March alone, this shows the confidence in the mortgage market as borrowers who are struggling to afford a new mortgages feel comforted by the fact they will get cash back upon completion of the mortgage application, this stops any financial "hangover" and provides a little bit of breathing space for homeowners who may feel strangled by there new mortgage repayments or even to recoup there legal fees.

How much cash can I get back?

This figure depends on the size of the mortgage loan but it is usually 5%.