A cashback mortgage offers you a cash lump-sum at the beginning of your mortgage. This is a normally a fixed percentage of your total mortgage but it can be an agreed amount also.
If you take out a mortgage for £100,000 with a 4% cashback, you will receive £4,000 on completion of your house purchase or remortgage.
There are no inherent negatives of a cashback mortgage but you should be wary of a higher than normal interest rate or early repayment fees that may negate the value of the cashback received.
Select from the list below to find out more about the different types of mortgages or call us for a no obligation chat on 0800 066 5570.
Charcol is not authorised to offer investment advice. We recommend you seek professional advice with regard to these topics if you believe they may affect you.