A cash back mortgage allows people to receive a lump sum from a lender on top of their initial mortgage loan.
Cash back schemes have become a popular trend in recent years because people are rewarded with money when they purchase products, rather than simply saving money via a discount.
These types of agreements are designed to distract potential buyers from other lenders that do not offer a cash back incentives. The payment will normally be 2 percent of the mortgage purchase or a fixed amount of cash.
When applying for a cash back mortgage, customers should always research their lenders to determine whether or not they are getting the best deal available on the market.