There are lots of different types of mortgages, and some of them will be more suited to you than others. This is because each of them are different and can benefit you in different ways.
Here we are looking at the cashback mortgage and how it works. Will it benefit you and how does it compare to other mortgage options?
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To put it simply, with a cashback mortgage, after you complete your term, you will get some money back.
The way that this is worked out is through a percentage of what you have borrowed. It’s usually something small like 1%-2%. In some cases, lenders will state a fixed amount in your mortgage contract.
Like all types of mortgages, Cashback Mortgages have both advantages and disadvantages. For example, you may be offered a free property valuation with your Cashback Mortgage, it all depends on your lender.
They are very popular amongst those looking to borrow lower mortgages. This is because you will get some money back along with some benefits on the side. If you get offered a competitive percentage on your Cashback Mortgage, it is definitely worth considering as an option. You may get a lot of money back upon the completion of your term.
The disadvantage to Cashback Mortgages is that they often come with high interest rates.
Cashback Mortgages, although they sound great, aren’t at the forefront of the mortgage market. They were more popular in the early 2000s.
It’s not a mortgage option that should be shoved under the rug, however. We still find customers taking out Cashback Mortgages; it’s not like they’re a bad choice. Quite a lot of buyers choose them as their backup option.
If you want Specialist Mortgage Advice in York and want to speak with an expert, get in touch with our team. We have experience with lots of different types of mortgages and can help you find one that suits you the best. A mortgage advisor in York will be right by your side during the whole moving home process.