There are lots of different types of mortgages available to home buyers. You might be a little confused wondering which mortgage route you should take, especially if you are a First Time Buyer in Nottingham.
There are unique advantages and disadvantages to each of these types and it is the job of a mortgage advisor in Nottingham to help you find the right outcome for your personal situation.
In this article, we will be taking a look at how Cashback Mortgages work, as well as the benefit they can have to borrowers and how they compare to other options.
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If you took out a cashback mortgage, at the end of your mortgage term you will typically get some cash back. Generally, the sum you will get back is based on a percentage of what you borrowed, usually around 1 or 2%.
In some cases, with a cashback mortgage, your lender might specify a fixed price within the mortgage contract. What this means, is that even if you are taking a mortgage out over a long period of time, the amount will not increase or change over time.
There are a handful of benefits to home buyers, including:
As an experienced mortgage broker in Nottingham, we would advise that if the lender offers you a reasonable percentage on your cashback mortgage, you may wish to consider taking this up as it may be beneficial in the long run. The only reason people may not wish to go the route of a cashback mortgage, is that the interest-rates tend to be a little higher
As we have discussed, there are a large variety of mortgage options out there, with cashback mortgages not being as popular as others. That being said, we do still receive enquiries about them, and they are a good back up choice if your first mortgage deal doesn’t quite work out.
If you are looking to learn about the different mortgage types and what your options may be, it could be worth your time getting in touch with an experienced Specialist Mortgage Advisor in Nottingham. No matter the circumstance, we’ll do what we can to help you get a mortgage. Working through difficult situations is what we do best.