A cashback mortgage gives you a lump sum on completion of your property purchase. This money can be used towards anything from mortgage repayments to DIY and furniture.
Cashback mortgages are often used to incentivise home buyers to purchase their mortgage from a particular lender. However, although a lump sum of money may make a mortgage sound like a great deal, it’s important to look at the cost of the mortgage as a whole.
need to know…
How do cashback mortgages work?
If you decide to opt for a cashback mortgage, you’ll receive a sum of money once your application has been approved. In some cases, you may need to wait until you’ve made your first mortgage repayment before you receive the money.
Although cashback mortgages can be a great way of accessing a healthy lump sum to help you in your new home, it’s important to read the small print to ensure the rest of the contract suits your own circumstances. For example, you may face higher repayment penalties and tighter overpayment restrictions than you would with a different deal.
How can I ensure I’m getting a great deal?
This is where TaylorMade can come in. We’ll compare every deal on the market to assess the ‘true cost’ of each package. After all, there’s no point getting £500 cashback from one mortgage provider if another lender can offer you a significantly better interest rate. With our help, you can get a great mortgage deal tailored to your specific circumstances.
Thinking of remortgaging?
Remortgaging allows you to switch provider or mortgage products to save you money and to suit the changing requirements of your lifestyle.
Before remortgaging, or before you decide to remortgage with your existing provider, it is essential to speak with an independent mortgage expert.
Our online mortgage calculators have been designed to help you with the most common mortgage questions such as ‘how much can I borrow?’ and ‘how much will it cost?’
To get a more accurate idea we recommend that you speak to one of our expert mortgage advisers.
A fixed rate mortgage charges a set rate of interest for a predetermined period. Once this period is over, the interest rate usually revers to the lender’s Standard Variable Rate (SVR).
Trackers are a type of variable rate mortgage which see interest rates rising and falling based on the Bank of England’s base rate. However, unlike traditional variable rate mortgages, a tracker mortgage doesn’t have to match the Bank of England’s rate exactly. Instead, the rate the borrower is charged is likely to be a little above the base rate.
An offset mortgage links the borrower’s savings to their mortgage balance. By choosing an offset mortgage, homeowners can reduce the amount of interest charged and potentially pay off the mortgage sooner.
A cashback mortgage pays the borrower an upfront lump sum. This can enable them to pay for a costly expense such as home furnishings, a car or university tuition fees. The rate paid tends to be based on the bank's Standard Variable Rate (SVR).
A discount rate mortgage offers borrowers a reduction on the lender’s Standard Variable Rate (SVR) for a set period of time. The rate can fluctuate and so although the borrower will repay less than the SVR, their repayments could rise or fall.
A variable rate mortgage sees the interest owed rise or fall depending on the base rates set by the bank. When the base rate is low, borrowers may benefit from extremely low mortgage repayments. However, if the base rate increases, so too will the amount borrowers are expected to pay in interest.
When a homeowner has an interest only mortgage, they won’t pay traditional mortgage payments each month. Instead, they’ll only repay the interest that is due. At the end of the mortgage term, the homeowner will be expected to pay the property’s value in full.
A capped rate mortgage offers similar security to a fixed rate mortgage. The rate payable will be capped for the duration of an agreed upon period of time. During this time, the rate may rise or fall in line with market fluctuations, but it will never exceed the capped rate.
As a result, a capped rate mortgage enables borrowers to benefit from falling rates without placing strain on their budget as a result of unaffordable increases.
First time buyers
Buying your first home can be a major life milestone. With so much to consider, saving and searching for your first home can also be a daunting process. Thankfully, TaylorMade are here to help you. Whether you’d like to know how much of a deposit you’ll need or how much you can borrow, we can answer all your burning questions.
Buying a second property
Buying a second property can be an extremely exciting process. Whether you’re still paying off the mortgage on your home or you own it outright, we’ll help you find the most affordable mortgage for your second property.
Remortgaging can be a great way to save money each month, reduce your mortgage term and free up cash for some of life’s greatest adventures. With our help you can learn everything there is to know about remortgaging.
Buy to let
Whether you’re looking to expand an existing rental property portfolio or you’re becoming a landlord for the first time, you’ll need a buy-to-let mortgage. We’ll guide you through the process and help you find a mortgage that enables you to maximise your investment returns.
Obtaining a mortgage when you’re self employed may seem challenging, but with our help you can gain access to the loan you need to purchase your ideal home. We’ll walk you through the whole process from the initial affordability check right through to completion.
Are you looking to buy a property using the shared ownership scheme? We’ll help you find a great mortgage deal so you can buy a share in your chosen property with as little fuss as possible. Here you can find out whether you qualify for a shared ownership mortgage and learn about the various advantages.
Thinking of remortgaging?
Before remortgaging, or before you decide to remortgage with your existing provider, it is important to speak with an independent mortgage expert.
Talk to the experts
With access to the entire mortgage market, the team at TaylorMade can help you find the most suitable mortgage product for your situation.
Whether you’re a first time buyer, a self employed small business owner or a buy-to-let investor, our mortgage experts can help you get a great deal.
To learn more about our service, please get in touch with one of our expert advisers.
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If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.
Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: http://financial-ombudsman.org.uk
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