Compare the best cashback mortgages UK 2024

What are cashback mortgages? They pay you a cash bonus to help with the costs of purchasing a property - but that doesn't necessarily make them the best choice.

1 - 15 of 390
Name Product Initial rate Revert rate (SVR) Maximum LTV Overall cost for comparison Cashback Apply link
CASHBACK
AIB (NI) 31/05/2029 Fixed
4.34% fixed until 31/05/2029
7.75% variable
75%
6.6% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
CASHBACK
Halifax 31/08/2029 Fixed
4.36% fixed until 31/08/2029
8.74% variable
75%
7% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
CASHBACK
Halifax 31/08/2029 Fixed
4.36% fixed until 31/08/2029
8.74% variable
75%
7% APRC
View details
CASHBACK
AIB (NI) 31/05/2029 Fixed
4.45% fixed until 31/05/2029
7.75% variable
80%
6.6% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
Reliance Bank 31/07/2026 Fixed
CASHBACK
Reliance Bank 31/07/2026 Fixed
4.45% fixed until 31/07/2026
7.5% variable
90%
7.1% APRC
Eligible customers can receive up to £850 cashback on completion. T&Cs apply.
View details
CASHBACK
Halifax 31/08/2029 Fixed
4.47% fixed until 31/08/2029
8.74% variable
75%
7% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
CASHBACK
Nationwide BS 5 years Fixed
4.47% fixed for 5 years
7.99% variable
75%
6.7% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
CASHBACK
Halifax 31/08/2029 Fixed
4.47% fixed until 31/08/2029
8.74% variable
75%
7% APRC
View details
CASHBACK
Nationwide BS 5 years Fixed
4.47% fixed for 5 years
7.99% variable
75%
6.7% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
CASHBACK
Virgin Money 01/08/2029 Fixed
4.49% fixed until 01/08/2029
9.49% variable
75%
7.4% APRC
Eligible customers can receive up to £300 cashback on completion. T&Cs apply.
View details
CASHBACK
Nationwide BS 5 years Fixed
4.52% fixed for 5 years
7.99% variable
75%
6.7% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
CASHBACK
NatWest 31/08/2029 Fixed
4.53% fixed until 31/08/2029
8.24% variable
85%
6.8% APRC
Eligible customers can receive up to £250 cashback on completion. T&Cs apply.
View details
CASHBACK
Royal Bank of Scotland 31/08/2029 Fixed
4.53% fixed until 31/08/2029
8.24% variable
85%
6.8% APRC
Eligible customers can receive up to £250 cashback on completion. T&Cs apply.
View details
CASHBACK
Yorkshire Building Society 31/07/2029 Fixed
4.54% fixed until 31/07/2029
8.24% variable
75%
6.8% APRC
Eligible customers can receive up to £250 cashback on completion. T&Cs apply.
View details
CASHBACK
TSB 30/06/2029 Fixed
4.54% fixed until 30/06/2029
8.74% variable
75%
7.1% APRC
Eligible customers can receive up to £300 cashback on completion. T&Cs apply.
View details
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The bonus of a cash payment from your mortgage provider could certainly prove appealing, especially when you consider all the one-off costs associated with buying a house.

However, cashback incentives can often appear on less competitive rates, so check whether in the longer term the deal will work out well for you or not.

Are cashback mortgages worth it?

Cashback can be offered on all types of mortgage deals, including fixed rate, tracker and discount mortgages. It’s transferred into your bank account as soon as your mortgage deal is finalised. There are no limitations on how the cashback money can be spent, and it’s not taxable.

Nevertheless, before you apply it’s still recommended to weigh up the overall cost of the mortgage during the introductory period. Often, there will be deals available with lower interest rates and lower fees that’ll save you more money, even when the cashback is considered.

If you’re comparing two-year fixed rate mortgages, this calculation will help you:

Mortgage fees + 24 monthly payments – cashback = overall cost

For a five-year fixed rate mortgage, the formula is:

Mortgage fees + 60 monthly payments – cashback = overall cost

These calculations assume you’re planning to remortgage before being switched to the lender’s standard variable rate (SVR) at the end of your fixed term.

What is the typical amount of cashback you could get?

In 2018, there were mortgages available offering up to £1,500 cashback. Several providers were offering £1,000 cashback, while many more were offering £500 cashback.

It’s common that the best cashback deals are only available on mortgages with a lower loan-to-value.

I don’t get it! Why would a bank pay cashback on a mortgage and not just make the mortgage slightly cheaper?

It’s true that mathematically it doesn’t really make sense: “You want to give me cashback on a loan? But I’m borrowing how much I need to borrow! Just reduce the rate slightly instead!”

But the reality is a bit less black and white.

Firstly from the borrowers’ point of view. You start looking for a house with a particular budget in mind… then you realise that by spending a little bit more you get this and that… then you see an amazing place that’s really out of your budget but maybe you could just about get close…!

Add to this all the extra costs involved with buying a house, and chances are there’s nothing leftover for say, buying a new washing machine, when you finally do get the keys to your new place.

So actually a little cashback at the point of completion can be incredibly helpful for buyers. Technically, borrowers should immediately use that cashback to payoff a tiny extra chunk of their mortgage, but that rarely happens.

Then there’s the lenders’ point of view. They know that people don’t stay with the same mortgage provider for 25 years – it has become a switching game. But they hope you’ll stay with them for a while after your fixed term has ended, because that’s when they’ll really make money out of you. They also hope that maybe you might open other accounts with them at some point. They’ll almost certainly be aiming to cross-sell you some life insurance as you take out your mortgage.

So for the lenders, it’s all about the cost of acquiring a new customer vs the predicted lifetime value of that new customer. And they’re even willing to offer cash upfront when they think it’s worthwhile.

Pros and cons of cashback mortgages

Pros

  • A cash bonus paid directly into your bank account
  • Paid as soon as your mortgage completes (when you’re usually short of spare cash)
  • Non-taxable income

Cons

  • Cashback can distract from the best rate

Alternatives to cashback mortgages

It’s common for homebuyers to be short of money as soon as their mortgage is finalised. However, it’s rarely worth choosing an inferior mortgage to fix this problem.

There are a couple of government products that were designed to help financially struggling first-time buyers onto the property ladder quicker.

These are:

  • Help To Buy Equity Loan. With this scheme, the government will lend you up to 20% of your desired property’s value to add to your mortgage deposit. It’s only available on certain properties, you’ll pay interest on this loan after five years and will have to pay it back in full when you sell the house.
  • Help To Buy Isa/Lifetime Isa. These Isas are designed for people saving for a mortgage deposit. If you put the funds saved in this Isa towards a mortgage, the government will top them up by 25% (although there is a cap to the maximum you can deposit in these accounts each month, and the maximum bonus you can receive).

There are several terms associated with these products, which you’ll need to understand before applying. Nevertheless, by taking advantage of them, you may have more cash spare to fund the other costs associated with buying a house.

The bottom line

Cashback mortgages appeal to the widespread desire for extra cash in the weeks after completing your mortgage. However, getting your hands on this bonus often comes at the cost of a superior mortgage deal.

Usually, this bonus only serves as a carrot on a stick, designed to sway people with poor knowledge of the mortgage market.

Always calculate the overall cost of a mortgage before making a decision on the most suitable deal for you.

If you have to wait a couple of extra months to save for the additional costs of buying a home, it’s likely to be worth doing so. A professional mortgage adviser can help you find the best deal that you’re likely to be approved for.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

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