Cashback mortgages will give you cash lump sum when you successfully apply for one, however catches do apply, so make sure you know what to look out for.
Cashback mortgages are one of the many headline incentives lenders are using to try to entice customers, but while the up front cash of anything between £200 and £1,000 can be tempting, often the deals do not work out to be quite as good as they look.
Cashback mortgages often come with interest rates slightly higher than the regular mortgage deals on the market. Many of them also come with extra restrictions on making early repayments. However, they can be useful to those who could benefit from the extra money.
For many first time buyers, having extra cash up front can be really useful in helping with the various moving costs and with buying furniture. But in the long run many of the cashback mortgage deals do not stack up against the best rates on the market, so it comes down to what works for you.