There are many different types of mortgages, and some of them will be perfect for your situation and some will not. The type of mortgage that you obtain will be down to what you are looking to achieve and your personal and financial situation.
There are no ‘regular’ mortgage types, there are the most popular ones and the specialist ones. Cashback mortgages fit into the specialist category as they are only taken out in certain circumstances and they have become less popular over recent years.
Not all mortgages will be beneficial to you and your situation, and that’s why it’s important to shop around and make sure that you take out a product that is right for you.
After paying off your whole mortgage term (paying off your mortgage), you will receive a lump sum from your lender. You should not confuse this with your shorter fixed terms.
The amount that you receive back is based on a percentage of what you have borrowed. This percentage is something like 1% or 2%. This may seem like a small amount, however, if you took out a £360,000 mortgage, 1% is £3,600 and 2% is £7,200. Sometimes lenders may offer a little more, it depends on the lender.
There are pros and cons to Cashback Mortgages. First of all, like other mortgage products, you may be offered some extra perks for taking out the deal. These perks could include a free mortgage valuation or some other sort of fringe benefits.
Once you receive your lump sum, you will be able to spend it on whatever you want. We’ve often seen people use the money to improve parts of their homes such as an extension or conversion. Most of the Cashback Mortgage customers that we have dealt with are those taking out lower mortgages.
Unfortunately, Cashback Mortgages can come with high-interest rates, and that is what can put people off. You should speak to a Mortgage Advisor in London to get an idea of what rates you can access.
There are many different types of mortgages. Some mortgages will not match your situation or the property that you’re purchasing, and that’s why it’s important that you find the right one. Finding the right one for you can be a difficult task though! This is where a Mortgage Broker in London like us comes in.
We can search 1000s of mortgage deals for you and we will make sure that you are on the best deal for your personal and financial situation. If you are interested in Cashback Mortgages and are considering taking one out on your property, feel free to get in touch. Getting Specialist Mortgage Advice in London could be very beneficial to your situation.
Follow our ‘Book Online’ process and book a free mortgage appointment with a Mortgage Advisor in London. Pick your own date and time, there are slots available seven days a week.