First-time buyers have been the focus for many mortgage providers recently and competition for their business shows little sign of abating. An increasing number of lenders are using cashback mortgages as an incentive to attract new borrowers who will benefit from the help to pay high legal fees and moving costs.<\/p>\n
Mortgage Solutions recently polled brokers about the increased competition among lenders. Almost two-thirds (65%) reported that competition levels had led to the creation of better deals for those buying their first home.<\/p>\n
A cashback mortgage is a desirable incentive for many first-time buyers because it reduces the financial pressure after completing on a house sale, when buyers have to pay substantial legal costs, plus incur the costs of moving and possibly furnishing their new home.<\/p>\n
Cashback can make a huge difference to first-time buyers<\/strong><\/p>\n Aaron Strutt, of mortgage brokers Trinity Financial, said \u201cFor some people, the cashback can make a huge difference at a time when first-time buyers are trying to get as much money together as possible. Cashback options are very popular, especially when they are through the big banks like Halifax.\u201d<\/p>\n Cashback deals up to \u00a31500 available for 95% LTV<\/strong><\/p>\n Halifax, Newcastle and Accord Mortgages are offering \u00a31000 cashback on their range of 95% loan-to-value (LTV) first-time buyer mortgages, whilst the Furness Building Society is offering \u00a31,500 for first-time buyers borrowing at 95% LTV, on a five-year fixed rate at 4.5% with no fees. The Post Office is offering a \u00a3400 incentive on some of its deals and Coventry have introduced \u00a3500 cashback on selected two and five-year fixed rate residential mortgages. In fact, all the major lenders appear to have a cashback offer within their product range.<\/p>\n Whilst cashback is an attractive proposition, borrowers should check the overall cost of a mortgage before making a commitment \u2013 there may be better deals available that will potentially save thousands over the lifetime of the mortgage. The decision then needs be whether the cashback incentive is worth more right now, than the potential savings over the next 25-30 years?<\/p>\n","protected":false},"excerpt":{"rendered":" First-time buyers have been the focus for many mortgage providers recently and competition for their business shows little sign of abating. An increasing number of lenders are using cashback mortgages as an incentive to attract new borrowers who will benefit from the help to pay high legal fees and moving costs. Mortgage Solutions recently polled… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":16984,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[355],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/16983"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=16983"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/16983\/revisions"}],"predecessor-version":[{"id":6097260,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/16983\/revisions\/6097260"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/16984"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=16983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=16983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=16983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}