The latest research by MoneyFacts.co.uk indicates that the number of mortgage cashback deals available this year has increased by 27%.
Deals that offer cashback when you take out a mortgage or credit card are popular options, especially if you were going to have the product anyway. Mortgage deals with a cashback option are often among the best deals. Borrowers often struggle to meet the financial demands of buying a new home, so cashback is a welcome deal to ease the burden. During the last year, there have been more cashback deals available, with the average amount also increasing.
Since the beginning of November, the number of deals has fallen slightly, which may be due to the recent increase in the interest rate. The financial expert at MoneyFacts.co.uk, Charlotte Nelson, stated that more borrowers are now looking closely at the cost of their mortgage, so the increase in the number of cashback deals is positive news. The deals also help lenders to attract new customers.
However, the news may not be so positive for those borrowers who have a smaller deposit, as most of the cashback deals are available to those with a larger deposit or more equity in their home. The number of available cashback deals for those with a 5 or 10% deposit has fallen, along with the amount of cashback.
Lenders often have different incentives on various mortgage deals, although the overall costs of the mortgage may vary. A CeMAP qualified mortgage advisor will be able to help you find the most suitable deal.