Understanding Cashback Mortgage Offers

Broker cashback and lender cashback are not the same

Lender cashback is an incentive attached to a lender's product. Broker cashback is a separate offer from the broker. Their conditions and payment arrangements can differ. Do not assume both will apply to the same case without checking the written terms.

Cashback Remortgages' existing illustration shows potential remortgage and product-transfer amounts by loan size. These are alternative routes. You do not receive both illustrated amounts for one completed mortgage.

What to confirm in writing

• Which mortgage service and loan amount qualify for the offer.
• The amount applicable to your actual completed mortgage, not just the initial enquiry.
• Any eligibility or completion conditions and exclusions.
• Who will make the payment, when it becomes due and how to raise a query.
• Whether a change of product, amount or application status changes the offer.

Compare the rate, fees and remaining balance

A deal with cashback can cost more overall if it has a higher interest rate or larger product fee. Early repayment charges and legal or valuation costs may also outweigh the incentive. Compare an equivalent loan and time period, and account for any fee added to the mortgage.

For example, an extra £25 a month over a two-year comparison period is £600 in payments before considering fees or the capital balance. A £300 cashback payment alone would not settle which deal is better. This is arithmetic, not an illustration of a current lender offer.

An estimate is not an entitlement

An enquiry, a calculator result or an agreement in principle does not confirm cashback eligibility or mortgage approval. Keep your written offer information and ask the adviser to reconfirm terms if the application changes.

The terms applicable to your transaction should be confirmed before you proceed. This explanatory page does not invent a payment deadline or replace your agreed terms.