Cash Back Remortgages

Cash Back Re-mortgaging couldn't be simpler to explain. Generally people re-mortgage in an attempt to obtain a lower rate of interest, however others also use remortgages to fund home improvements or assist with debt consolidation.

Cash-Back Remortgages offer the remortgage applicant a cash lump sum upon completing the remortgage transfer, the level of cash back will vary with re-mortgage lenders. Cash back re-mortgages are usually available within the lenders standard variable rate (SVR) or tracker rate remortgage solutions.

Cash Back Lenders will typically be able to offer a minimum of 5% of the re-mortgage amount. Some remortgage lenders will cover the arrangement fees that are often applied to the mortgage deal. Cash-back remortgages can prove useful for those who wish to carry out important renovations or want to purchase new furniture, plus many more reasons.

Interest rates applied to cash back remortgages usually apply to the SVR (Standard Variable Rate), therefore if the Bank of England's base rate increases the lenders SVR will also be subject to change in accordance with the base rate. Changes will directly effect the remortgage applicants repayments.

Cash Back Remortgages can often tie the remortgage applicant into a particular remortgage product, meaning that they can impose penalties should the remortgage debt be repaid early (Early Repayment Penalties- ERP). Quite often if the remortgage debt is repaid earlier than originally forecast the lender will also redeem the cash back.

It’s worth checking with various lenders in order to get the best cash back remortgage deal on offer.

Back to Cash Back Remortgage

Skip To Content