Solution

The cashback solution

Several lenders offer cashback loans – there are full details later on. All work in pretty much the same way. If your application is accepted then on the day your mortgage goes through you get the cashback payment worth up to 10 per cent of your mortgage value. The money is paid by cheque, or goes direct into your bank account. And it can be a wonderful amount. Let’s say you’ve got a typical £160,000 mortgage. With the most generous of cashback lenders this can produce a hefty payment of some £16,000.

Best of all is that you are free to spend the money on anything you want. New furniture, DIY projects, clearing old debts, buying a new car – whatever you choose.

Sounds too good to be true? Unfortunately some experts think that it is. They say there are dangerous drawbacks to some cash back mortgages. Here are all the pros can cons you need to know about. Then you can decide if a cash back mortgage will work for you.