Cash Back
Some mortgage lenders, particularly in the United
Kingdom,
give a
one-off lump
sum payment
to new
borrowers at
the
beginning of
a mortgage.
Called
cashback,
this lump
sum is often
marketed as
free cash,
but it is in
fact funded
by the
mortgage
interest
paid by the
borrower.
The size of
the lump sum
is dependent
on the size
of the
mortgage and
is usually
offered only
on certain
mortgages in
a mortgage
lender's
range.
Cashback on
mortgages is
popular with
first time
buyers, who
put the
cashback
towards
buying
furniture,
as these
types of
buyers often
do not have
any surplus
funds after
paying the
deposit on
their new
home.
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