Many mortgage applicants, particularly First Time Buyers, don’t realise that there are lots of different types of mortgages available. There are both advantages and disadvantages to each mortgage type, however, you will always go for the one that is best suited to your individual circumstances. This is where we come in, as your Mortgage Broker in Coventry we will find the perfect deal for you; we know the ins and outs of mortgages so we will know exactly where to start once you send us your details.
In this article, we are going to look at cashback mortgages and how they work. We will also look at how a cashback mortgage benefits borrowers and how it compares to other mortgage options.
If you would rather watch our video, feel free to watch “What is a Cashback Mortgage?” below. MoneymanTV is our new virtual hub for everything mortgage, so make sure to check our channel on Youtube for weekly mortgage tips and tricks. We also have made a dedicated playlist for videos like this, it’s called “Mortgages Explained”, find it here.
If you haven’t already guessed it by now, a cashback mortgage works as a normal mortgage, but once you pay off / finish your mortgage term you will get some money back.
The amount that you get is usually based off a percentage of what you have borrowed, this is normally about 1 or 2%. In some cases, a fixed price may be stated in your contract. This amount cannot be increased over time, it will always be that amount.
Cashback mortgages have pros and con, but again, it really depends on your individual circumstances. Most cashback mortgages come with free property valuations or some sort of fringe benefits on the side. This is good as you could be saving money in areas that you didn’t think you could.
Cashback mortgages will best suit applicants who are looking at borrowing lower end mortgages. The obvious benefit is that you get some money back, which could really benefit you in the long run. As a Mortgage Advisor in Coventry, we would advise that if you get offered a cashback mortgage, you should take it into consideration as taking it up could benefit you more than you realise.
The only negative with cashback mortgages is that they usually come with higher interest rates than other mortgages.
The cashback mortgage tends to get shed from the limelight when compared to other mortgages. Despite the fact that this mortgage option is not the most popular, we still get enquiries about them and will always recommend them to an applicant if we think that it will benefit them most. They are still worth considering and are a great back up option if your primary option doesn’t go ahead.
We have been working within the mortgage broker industry for over 20 years now so we know exactly what mortgage to recommend you with based off your personal and financial situation. If your situation is a little more complicated and you are looking for Specialist Mortgage Advice in Coventry, don’t hesitate to call us. We have dealt with almost every mortgage scenario possible, it’s more than likely that we come across a similar or if not the same situation before.
Feel free to get in touch to have a chat with a Mortgage Advisor in Coventry about your mortgage options.