A mortgage that is ideal for first time buyers who would need a cash injection after the first month. Most cash back mortgages give the borrower a lump sum of cash after the first mortgage repayment, others may give you the amount back after the mortgage.

The amount of cash given back can be calculated in many ways,

A percentage calculated from the overall borrowings

A set figure written within the agreement

Another way you could be paid is upon the length of the mortgage tie in.

Commonly the amount of cash back is between 1% and 3% but if you shop around you can find deals which will get you cash back of nearly 10%.

Very useful to people who need to have funds available immediately. The mortgage option is open to all but the most to benefit from it would be first time buyers who would need to buy furniture etc. for their new property. The cash could come useful when paying off fees occurred when buying the property.

The interest rates are likely to be higher than the non cash back mortgages. It's through the high interest rates the lender would recover the lump sum they have given back to the borrower.

The cash back is an agreement made between the lender and the borrower at the start of the mortgage. The lender will set the interest rates paid upon the amount borrowed and the term for which it is borrowed. The tie-in redemptions are also calculated accordingly. The lender would then agree on when and how much of a cash back you are entitled to through one of the ways stated above (How is the cash back calculated?).