This offers you cash back when the mortgage is finalised. The amount of cash back is often a percentage of the loan. This cash may be attractive to first time buyers who need extra cash for home improvements or furniture.
Plus Points: The cash received back can be attractive to those who require the funds to pay professional fees, make home improvements, buy furniture, etc.
Points to Watch: Rates are usually set at the lender's standard variable rate for a fixed term. More cash back can add to the term and cost of the mortgage. Expect cancellation penalties to change mortgage within the initial years.
2 standard repayment methods for Cash Back Mortgages:
