Extra cash when you move house is just what most people need and that's what a cashback mortgage offers. However, for the sake of a bit of extra cash, make sure you don't end up with the wrong mortgage - we all know that moving home is an expensive business and extra cash is welcome. Find out more about how it works here.
Cashback mortgages do give you just that. A cashback mortgage willgive you a lump sum of money either just before you pay for your new home or after the first monthly payment
How much cash you get depends on the deal. 5% cashback is typical but some lenders will give you up to 10% of the amount you borrow. Cashbacks can be good for those needing extra cash at the beginning of their mortgage to pay for moving-in and setting up home costs. If all of your savings have gone on buying a new home and you still need some extra money to pay for furniture and other essentials, a cashback mortgage could be the solution. And, cashback mortgages can also work for first-time buyers who don't have a deposit. Although most lenders only let you borrow 95 per cent of the value of a property, which means you have to find a 5 per cent deposit, some cashback mortgage lenders will still give you a cash sum before you complete on your house purchase, allowing you to use this cash as a deposit!
Just make sure you check out that the overall interest rate you get is still competitive and that there isn't too much of a lock in period so that you can't switch to a better rate if appropriate.
