The Best Remortgages With Cashback | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 10/08/2021

To help entice homeowners to lock into a new mortgage deal, banks and building societies will aim to make remortgage deals as attractive as possible by including incentives such as free valuations and no legal fees that reduce the cost of remortgaging.

Many mortgage lenders are now also offering homeowners cashback when they lock into a new deal. Cashback can be a great way of providing a small boost to incomes when remortgaging, which can be particularly useful to homeowners who have struggled financially over the last 18 months.

While choosing a remortgage deal with cashback can be tempting, homeowners should consider the deal overall, including rate and product fees, to determine whether it is the best deal for them. Before locking into a new mortgage deal it might be worthwhile speaking to a mortgage broker who will be able to select the best deals with the incentives that best suit the borrower’s needs.

To give an idea of what cashback remortgage deals are available, below we’ve highlighted some of the best remortgage deals that offer cashback and which have the lowest overall mortgage cost, taking into account rate and product fees.

Two year fixed remortgage deals with cashback

Many lenders are currently offering deals that allow homeowners to choose between no legal fees or cashback when remortgaging. The most competitive of these deals is Nationwide Building Society’s deal offering 1.14% (3.2% APRC) fixed for two years and then reverts to 3.59%. This deal is available to those with a minimum of 40% equity in their home (60% LTV). It does not charge a product fee and, along with offering borrowers the option of either £500 cashback or no legal fees, it also has the incentive of free valuation.

Alternatively, NatWest Int Sols (which is only available through mortgage brokers), Royal Bank of Scotland and NatWest all offer highly competitive rates on deals that come with £250 cashback, as well as no legal fees and free valuation . All these deals offer 0 .92% (3.2% APRC) fixed until 30 November 2023 and then revert to 3.59%. They are available to those with a minimum of 40 % equity in their home (60% LTV) and properties must have a valid Energy Performance Certificate with a rating of A or B. They charge £995 in product fees.

For homeowners who have 25% equity in their home (75% LTV), Barclays Mortgage offers the most competitive deal that includes the incentive of either £250 cashback or no legal fees, along with free valuation for properties valued to a maximum of £2 million. This deal offers 1.05% (3.2% APRC) fixed until 30 November 2023 and then reverts to 3.59%. It charges £999 in product fees.

Again, NatWest Int Sols, Royal Bank of Scotland and NatWest all offer highly competitive deals for those with 25% equity in their home (75% LTV) that also offer the incentive of £250 cashback, along with no legal fees and free valuation. These deals all offer 1.06% (3.2% APRC) fixed until 30 November 2023, after which they revert to 3.59%. These deals are only available on properties that have a valid Energy Performance Certificate with a rating of A or B. They charge £995 in product fees.

Homeowners looking for a higher amount of cashback will have to opt for a less competitive deal. For example, a deal from Halifax has the incentive of £750 cashback, as well as no legal fees and free valuation. This deal offers 1.47% (3.2% APRC) fixed until 30 November 2023, after which it reverts to 3.59%. It is available those with a minimum of 40% equity in their home (60% LTV) and borrowers must take a minimum mortgage loan of £250,000. There are no product fees charged on this deal.

Find the best two year fixed remortgage deal

Find out more and compare the best two year fixed remortgage deals. 

Five year fixed remortgage deals with cashback

The most competitive five year fixed deals, when factoring the overall cost of the mortgage, that offer cashback come from NatWest Int Sols, Royal Bank of Scotland and NatWest. These deals have the incentive of £250 cashback, as well as no legal fees and free valuation. They offer 1.03% (2.6% APRC) fixed until 30 November 2026, after which they revert to 3.59%. All the deals are available to those with a minimum of 40% equity in their home (60% LTV) and properties must have a valid Energy Performance Certificate with a rating of A or B. All the deals charge £995 in product fees.

On a slightly less competitive deal when taking into account product fees as well as rate, Nationwide offers a higher cashback incentive of £500, but borrowers must choose between cashback or no legal fees. This deal offers 0.99% (2.7% APRC) fixed for five years and then reverts to 3.59%. This deal requires homeowners to have a minimum of 40% equity in their home (60% LTV) and they must take a minimum mortgage loan of £300,000. It charges a fee of £1,499 and, along with the cashback or no legal fees incentive, it also has the incentive of free valuation.

For those with 25% equity in their home (75% LTV) the most competitive deal that offers cashback comes from Barclays Mortgage. This deal offers borrowers the choice between £250 cashback or no legal fees, as well as free valuation. It offers 1.25% (2.7% APRC) fixed until 30 November 2026, after which it reverts to 3.59%. It charges £999 in product fees.

As with the two year fixed remortgage deals, NatWest Int Sols, Royal Bank of Scotland and NatWest all offer the most competitive deal for those with 25% equity in their home (75% LTV) and which has the incentive of £250 cashback, along with no legal fees and free valuation. All these mortgage lenders offer 1.29% (2.7% APRC) fixed until 30 November 2026 and then reverts to 3.59%. These deals are only available for properties that have a valid Energy Performance Certificate with a rating of A or B. The deals charge £995 in product fees.

Halifax also has a higher cashback offer on a five year fixed deal which offers £750 cashback as well as no legal fees and free valuation. This deal offers 1.55% (2.8% APRC) fixed until the 30 November 2026, which then reverts to 3.59%. It is available to those with 40% equity in their home (60% LTV) and borrowers must take a minimum mortgage loan of £250,000. It does not charge any product fees.

Find the best five year fixed remortgage deal

Find out more and compare the best five year fixed remortgage deals. 

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