Cashback Mortgages

A cashback mortgage is where the lender agrees to give the borrower a lump sum as a percentage of the total amount borrowed, so a borrower might get a 5% unsecured loan. A real world example of this would be a 115% mortgage on a property worth £90,000; 15% of £90,000 works out at £13,500, this would be paid into the borrowers account, and the total owed to the lender would come to £103,500 less interest over time. This type of mortgage is useful for first-time buyers who need money to buy furniture or renovate their new home.