Cash Back Mortgages

What is a cash back mortgage?
A cash back is a sum of money paid to the borrower by the lender on completion of a mortgage. It serves as an incentive to the borrower to sign up for a mortgage at a time when personal finances may be stretched. The cash back can come in handy to pay for removal costs, solicitor’s fees, and other moving costs.

When taking a cash back mortgage the cash back is often expressed as a percentage of the mortgage amount. The amount offered will sometimes be linked to the amount of risk involved, i.e. when borrowing less than say 75%, the percentage offered will be higher to reflect the lower amount of risk, than lending say 95% of the property value.