Popularity of cash back mortgages on the rise...

According to Moneyfacts, the number of deals offering cashback has increased from 939 a year ago to 1,249 in November 2017 and 1,315 today with the average amount of cashback offered also steadily increasing, rising from £366 in May 2017 to £449 today.

 

The largest amount of cashback on offer has also risen from £1,000 six months ago to £1,500.

 

However, while cashback is a handy perk, borrowers should be looking out for the most suitable mortgage deal for them, and not focus solely on the lowest rates or a standalone incentive. For example, at 95% loan-to-value, Furness BS offers a £1,500 cashback incentive on its 4.50% five-year deal with no product fee, but it can be more expensive than others in terms of true cost. As an alternative, Yorkshire Bank offers a 3.79% five-year fee-free fixed deal with up to £500 cashback and free valuation, making it £4,742.60 cheaper over the first five years**.

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