*Picture credit and information all to Luisa Hough*
"As the name implies, a cashback mortgage is similar to a standard mortgage, except that you receive a lump sum of cash upon closing. This lump sum will either be a fixed amount of money or a percentage of the mortgage amount, usually between 1-7%, depending on the mortgage term selected.
How you use the cash is entirely up to you. Some of the most common reasons to secure a cashback mortgage are to:
- Cover closing costs.
- Buy new furniture.
- Renovate your property.
- Supplement cashflow.
- Consolidate higher-interest debt.
You can use the cash for anything you like. It’s tax-free and paid to you directly once the mortgage closes".
Visit https://www.luisahough.com/what-is-a-cashback-mortgage to learn more about
- Understanding the cost of a cashback mortgage.
- Eligibility for a cashback mortgage
- breaking your mortgage term early
- Get independent mortgage advice.