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Cashback Mortgages
emmalt
Posts: 152 Forumite
What are people's views on cashback mortgages. Steer well clearLook at with cautionCould be goodOur mortgage fixed rate is due to end in Jan 08 so I am starting to research the market now. I know it is early but I want to start to get a feel for things. One mortgage that came up was with cashback. Overall it looked good but what should I be looking out for.Also can anyone recommend websites for comparing. I know of moneysupermarket and virginmoney. Anyother?Thanks
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May I reopen this thread?
As an example, Theloughborough is offering 6% cash back. That's a serious amount of money. Is there any catch?0 -
I havent looked but its almost certainly going to be variable rate mortgage and have a 5-6 year tie in.Is there any catch?
Many deals when costed over the tie in period actually work out very similar. You will probably find a decent 5 year fixed rate saves you more money over the fix period than the cashback.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
sounds like the 5yr fix that the chelsea do/did - highly uncompetitive rate but has its place. If you move/redeem in the 5 yrs, you pay the 6% back + early repayment charge.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Chelsea did have a 5yr Fixed Rate with 6% cashback that when costed over the 5 year period came out cheapest, but I'm sure it's been withdrawn now.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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http://www.thechelsea.co.uk/html/mortgages/mortgages_5yrfixratecb.html
or
http://www.thechelsea.co.uk/html/mortgages/mortgages_fixed_5yr_2551.html
they still do them but its never sourced top of my list on a 5yr fixed rate deal. Only time it will source well is if you need the cashback facility. I believe there are cheaper/more sensible options though than this deal.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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