Cash Back Mortgages offer an opportunity to take a cash lump sum, usually at the start of your mortgage. It can be a fixed amount or a pre agreed percentage of the amount of the loan.

Percentages range between 1% and 5% - but can be as high as 10% - of the mortgage amount.

Cash back mortgages are often not stand alone mortgage types, and can be added onto the other different mortgage types, such as trackers and fixed rate deals. In fact, pure cash back mortgages are quite uncommon.

The obvious advantage of a cash back mortgage is that it gives you some money at a vital time to enable you to buy items such as those mentioned above, or home furnishings, or you might choose to pay off your credit card debts, or use the cash to help pay off those fees that go with buying a house as discussed above.

Cash-back mortgages are often useful for first time buyers with the mortgage lender offering a lump sum of cash at the start of a mortgage, giving them a good start to their home owning life.

This entry was posted on Friday, June 12th, 2009 at 1:03 pm and is filed under Mortgage, Mortgage Rates, Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.