Cash Back
A cash back mortgage involves a lump sum being paid to a borrower shortly after completion of a new mortgage.
Cash back mortgages are not commonplace.
One of the reasons for their unpopularity is that a lender would commonly charge a higher interest rate than for a non-cash back mortgage.
In the event a cash back mortgage is redeemed during an early repayment charge period, the lender would usually require repayment, in full, of the original cash back sum.
Cash back mortgages should not be confused with 'free conveyancing' or 'free valuation' offers that a lender may offer as part of a remortgaging deal.
