We tend to find we receive loads of enquiries regarding the many different types of mortgage available one of them being cashback mortgages. We aim to answer the most frequent questions about cashback mortgages. These include; will it benefit me in the long term or short term, and how does it compare to my other mortgage options?
With the sheer amount of requests, Mortgage Advisor in Newcastle and managing director Malcolm ‘the Moneyman’ decided to make a video regarding cashback mortgages.
Cashback mortgages are pretty self-explanatory. After paying off your mortgage or after finishing your mortgage term, you will get some cash back.
The amount you get back is a percentage of what you have borrowed like 1 or 2%. Some lenders like to have a fixed price in the contract. Even if you have a long mortgage term, this is a fixed amount, and it will not increase over time.
Cashback mortgages come with both advantages and disadvantages. Such as, some Cashback Mortgages might come with a free property valuation or some fringe benefits.
Cashback Mortgages can be very attractive to customers that are borrowing lower mortgages. You will get some money back plus some benefits on the side. If you are offered a reasonable percentage on your Cashback Mortgage, you should consider taking it up as it may be worth it in the long term.
The only real disadvantage to a cashback mortgage is that they sometimes come with high-interest rates.
Compared to other mortgage options available, Cashback Mortgages are not the most popular. However, they are still worth considering. We still see customers at Newcastlemoneyman looking for Cashback Mortgages, and they are a great backup option if you don’t qualify for your first choices.
If you want a more in-depth viewpoint, be sure to book your free mortgage appointment online or give us a call To speak with a Specialist Mortgage Advisor in Newcastle. Our team will be more than happy to explain the benefits of taking out a Cashback Mortgage and why they could be a suitable option for you.