Kings Mortgages

Cash-back mortgages

A cash-back mortgage offers you the opportunity to receive a cash lump sum, usually at the commencement of your mortgage. This may be an agreed percentage of the amount that you borrowed or a fixed amount.

Cash-back mortgages offer a cash sum and may also be a feature added to one of the different mortgage types.

Advantages of a cash-back mortgage

• The cash-back sum can be used to assist with the initial costs involved in purchasing a home e.g. solicitors fees

Drawbacks of a cash-back mortgage

• An early repayment charge may apply for a set period, which could be the equivalent of paying back all of the cash you received
• For some cash-back amounts, you may find that the interest rate payable is not particularly competitive and may be a variable rate
• There is generally an arrangement or booking fee payable for a cash-back mortgage