You are here: Home - Uncategorized -

Cashback mortgages account for almost a third of products

0
Written by:
27/11/2018
Mortgages with a lump sum cash incentive have more than doubled in the last seven years
Cashback mortgages account for almost a third of products

The proportion of deals with a cashback incentive has grown significantly in recent years, according to Moneyfacts.

The financial information provider said that the incentives are becoming more widespread within both the residential and buy-to-let mortgage markets.

In November 2011 there were only 627 cashback mortgages available, accounting for 19% of all products. Now there are 1,459 cashback deals on offer, accounting for 29% of all mortgage deals.

Darren Cook, finance expert at Moneyfacts.co.uk, said: “Buying a new home or remortgaging your existing deal can be an expensive process. An offer that contains cashback may help to soften the immediate costs that this process incurs.

“First-time buyers may be encouraged to find that two-thirds of residential mortgage deals with a cashback incentive option require a deposit of up to 20%. This could make quite a difference upfront to those who have struggled to save a suitable deposit amount.”

Buy-to-let boost

There are now 444 buy-to-let deals on offer with a cashback incentive, compared to just 94 in 2011.

Cook said: “An incentive of cashback to assist landlords in covering the costs of a buy-to-let mortgage is becoming a more prominent feature of the buy-to-let market. Especially considering last year’s upheaval in this sector, landlords will be looking for any way to cut costs and increase their margins. It seems that providers are obliging.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your Mortgage Guides

Your Mortgage Award Winners 2018-2019

Download our guide to the best mortgage lenders in the UK

Read More >

Read previous post:
radiator
Protect your property from the big freeze

Top tips to prevent burst and frozen pipes this winter

Close