Mortgages With Possible Cashback
There are many different types of mortgages on the market for UK consumers today, with something to suit all needs and circumstances, from those with excellent credit and a large deposit to those with poor credit, no deposit, and first time buyers.
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The wide range of mortgages on offer from lenders today can make choosing the right deal difficult if you don’t know much about mortgages, so it might be an idea to seek advice from an independent financial adviser to find out which might be the right mortgage for you.
This may cost you money, as some independent financial advisers charge the fee to the customer rather than to the lender, which many people prefer, as it means that they are getting truly independent advice and not advice that is biased and based on the amount of commission that the adviser is likely to get from the lender.
Although it can cost you money to get help and advice from the independent financial adviser, it can also save you a fortune in the long run, and can stop you from making what could turn out to be a very expensive mistake. You should be aware that the competition amongst mortgage providers is extremely stiff at the moment, and in order to try and tempt more customers many offer a range of incentives with their mortgages, one of which is cash back.
Some lenders offer cash back of either a set amount, such as £250, or of a percentage of the mortgage loan upon completion of the mortgage. At first glance this might seem like a very attractive offer to the borrower, as the prospect of getting back anything from £250 upwards after completing your mortgage is not to be sniffed at.
However, it is also important to ensure that you are not taking on a poor value or unsuitable mortgage just for the sake of a little cash back upon completion, as you could otherwise end up paying the cash back in fees and interest ten times over in the future.
When you are looking at mortgages you should not let the offer of cash back blind you in terms of the other features of the mortgage. You still need to take into consideration the mortgage interest rate, any set up fees that may be charged, any proposed mortgage exit fees in case you decide to switch at a later date, and also the terms and condition to check on any exclusions or restrictions.
If the cash back mortgage offers competitive interest rates and other features as well, then it may be a mortgage to consider. However, if the interest rates are far higher than on other mortgages then the cash back feature could end up costing you dearly over the term of the loan.
You may also find that there are brokers that offer you a percentage of their fee in the event that you go through them to find your mortgage. Again, you could find that the broker gets you a great deal, and you also get cash back at the end of it all when you have completed on your mortgage.
However, you may find that the broker uses the lender that offers the highest commission, which means that you may get more in the way of cash back, which is a short term benefit, but you may not have the best value mortgage, which is a long term disadvantage.
Search for mortgages that offer cashback by visiting our
mortgage centre
