Cash Back

The Deal:

A lender agrees on completion of the mortgage to provide you with a cash lump sum. Normally a lender will require a non-refundable booking fee in advance to reserve this option. Borrowers will be required to remain on the lenders variable rate of interest for a pre-determined period of time. This is can be linked to the amount of cashback provided.


  • Can be used to replace any savings used as a deposit
  • To provide some help for essential work to your new home
  • Can be used to repay money borrowed for your deposit (e.g. family, friends)


  • Associated redemption penalties are restrictive.
  • May be required to stay on bank variable rate for a long period after initial deal has expired


A cash back mortgage is the most suitable option in a number of circumstances the most common being those identified below:

  • First time buyers
  • Individuals utilising short-term finance arrangements to provide their deposit.
  • Borrowers confident that the mortgage rate is likely to fall