This type of mortgage is great for people who want to bit more cash when purchasing property, it offers a certain percentage of the loan back to the borrower. The normal rate of which is paid back is around 3% - 5% but many lenders will offer up to 10%. The higher the cash back percentage is the longer you will be tied into the mortgage with many mortgages carrying a heavy repayment charges for the last few months if you were to change lenders or change the mortgage type.

• You get a lump sum of cash when you take out a mortgage or after the first repayment

• Most deals offer 3% -5% of the amount borrowed as cashback

• The higher rate of cashback the longer the repayment term would be

• There may be high early repayment charges especially if you change lenders of or products

• Many deals are available offering smaller amounts of cash back at very competitive rates.

Always speak to a professional advisor before taking out a mortgage and be clear on the amount you would like to borrow.

Great for first time buyers who might need cash for moving costs like stamp duty or furnishings for the new property, because the amount is a certain percent of the borrowings you would always know how much you would receive once the first payment has been made.

Some lenders will give give you the option of taking your cashback after the mortgage period is over. If the borrower can afford to take this option then it's one that any type of homeowner can benefit from.

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The main disadvantage of taking out a cashback mortgage is that the interest rates are higher than other mortgage options.

The tie ins are longer than other options.

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