There are many different types of mortgage available and you probably don’t know many of them, especially if you are a First Time Buyer. Each type is different and they all have both positives and negatives to them. Finding the right mortgage that is best suited to your individual circumstances is where we come in, your Mortgage Broker in Hull is here to help find that perfect mortgage for you!
In this article, we are going to focus on the Cashback Mortgage and how it works. Also, how does it benefit a borrower like you? How does it compare to other mortgage options?
If you would prefer to watch our moneymanTV YouTube video on cashback mortgages, feel free to do so. We always get asked questions on different types of mortgages, so we decided to cover most of them on our channel to explain the basics. We have a full dedicated playlist on mortgage types over on our channel so make sure to check it out here.
You can probably guess what a Cashback Mortgage. To put it simply, when you pay off your mortgage/finish your mortgage term, you get some money back.
The sum that you receive back is usually based off a percentage of what you have borrowed, normally it’s around 1 or 2%. With some Cashback Mortgages, your lender might state a fixed price in the contract. Even if you have a long term mortgage deal, this amount will not increase over time or change.
Cashback Mortgages come with both positives and negatives. For example, most Cashback Mortgages come with a free property valuation or with some sort of fringe benefits. This could be really useful and could end up saving you money in areas you thought you wouldn’t.
Cashback Mortgages will suit customers that are looking to borrow lower end mortgages very well. You get some money back plus benefits on the side even though you’re paying a lower end mortgage. As a Mortgage Broker in Hull, we advise that 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 run.
The only real disadvantage to a cashback mortgage is that they normally come with high-interest rates.
As we said before, there are lots of different types of mortgage available, and the Cashback Mortgage is not the most popular. However, we still get regular enquires about them and they are still worth considering. They are also a perfect back up option if your first choice mortgage deal doesn’t go to plan.
If you want to find out more about the different types of mortgages then you should speak to one of our Specialist Mortgage Advisors in Hull. Finding the perfect mortgage for your personal situation is what we do best, it doesn’t matter if your situation is complicated, we have probably solved a similar case before.
Get in touch with your mortgage Advisor in Hull today to discuss all of your mortgage options. Receive a free mortgage consultation at Hullmoneyman.