Four major lenders are offering mortgage customers up to £2,000 in free cash when they secure a deal, providing a welcome boost for homebuyers and those remortgaging. HSBC, Skipton Building Society, Yorkshire Building Society, and Accord Mortgages have all launched cashback incentives, with some products paying the full £2,000 lump sum upon completion.
Which Banks Are Offering Cashback?
According to Moneyfactscompare, the full list of lenders and their cashback deals includes:
- HSBC – offering cashback on selected fixed-rate mortgages, with amounts varying by product.
- Skipton Building Society – providing up to £2,000 cashback on certain deals for first-time buyers and movers.
- Yorkshire Building Society – paying up to £2,000 cashback on a five-year fix at 5.28% for borrowers with a 10% deposit.
- Accord Mortgages – offering £2,000 cashback on two products: a five-year fix at either 5.42% or 6.54%.
How Does Cashback Work?
A cashback mortgage pays you a lump sum when you successfully buy a house or remortgage. The money is sent to your solicitor on the day the mortgage is drawn down, and they pass it on to you. You can use the cash for any purpose, such as moving costs, furniture, or other expenses, easing the financial strain of moving home.
For example, Yorkshire Building Society's deal is aimed at borrowers with a 10% deposit or equity, offering a rate of 5.28% with up to £2,000 cashback. Accord Mortgages provides £2,000 cashback on its five-year fixes at 5.42% and 6.54%.
Expert Advice for First-Time Buyers
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “First-time buyers would be wise to seek independent financial advice to find the right deal for them, to ensure it provides the best value on a true cost basis. This includes not just cashback, but also the initial rate, product fees and other cost-saving incentives such as a free valuation or even legal fees.”
Springall emphasised that cashback should not be the sole deciding factor, as the overall cost of the mortgage, including interest rates and fees, must be considered. Borrowers should compare the true cost of each deal before committing.
Receiving the Cashback
The cashback is typically paid to your solicitor with the mortgage funds on the day you complete the purchase or remortgage. You should agree with your solicitor how you would like to receive the cashback, whether by bank transfer or cheque. The funds can be used immediately to cover moving expenses or other costs.
These offers are available for a limited time and may be subject to terms and conditions. Interested buyers should act quickly to secure the deals before they are withdrawn.
