When it comes to choosing which mortgage product to take out, it can become a bit of a minefield as there are so many choices available. If you’re a First Time Buyer in Doncaster, all of these different options can get a little bit confusing. Each type will work very differently from another too, therefore, it’s best to know how each one works.
In this article, we are going to focus on the Cashback mortgage and look at how they work. Also touching on how it can benefit you and your mortgage situation.
Before we dive into the article, if you’d prefer to watch Malcolm’s video on cashback mortgages, that option is available. Take a look at the moneymanTV YouTube video just below:
They’re as simple as they sound. Taking out a Cashback mortgage would allow you to get some cash back at the end of your whole mortgage term. They’re usually taken out over long-medium mortgage terms.
The amount that you’ll get back at the end of your term is usually calculated from a percentage of what you have borrowed. Typically, the percentage will be something like 1 or 2%.
In other cases, lenders may state a fixed price in your contract that you signed when you originally took out the mortgage. The amount stated on your contract will not increase over time, this is a fixed price.
Like all mortgage options, the Cashback mortgage comes with both positives and negatives. Sometimes, it can be down to the lender that you’ve chosen to take out the mortgage with. For example, some lenders may offer a free mortgage valuation or some sort of fringe benefits with your product.
Cashback mortgages tend to appeal to customers that are borrowing lower mortgages. You will get money back at the end of your term and possibly some benefits on the side. If you manage to get offered a competitive percentage on a Cashback mortgage in Doncaster, it may be worth considering as it will be worth the investment in the long term.
There is only really one downside to these types of mortgages, and that’s that they tend to come with high interest rates.
When compared to other mortgage options, the Cashback mortgage isn’t at the forefront of the market; it’s not the most popular amongst homeowners. This doesn’t mean that it’s not an option worth considering.
As a mortgage broker in Doncaster, we do occasionally see Cashback mortgages being taken out, therefore if you are interested in them, they’re still available!
If you don’t quite qualify for your first mortgage option, they make a great backup option. If you want to find out more about the Cashback mortgage and the other types of mortgages that are available, you should get Specialist Mortgage Advice in Doncaster from our advisors. We will be more than happy to go through all of your mortgage options with you.
Get in touch by booking your free mortgage appointment online today.