Cashback incentives on the rise: Moneyfacts

Financial data firm Moneyfacts has revealed the extent of the growth in cashback incentives in both the residential and buy-to-let mortgage products.

The data shows that, today, 29 per cent of all residential products come with a cashback incentive – or 1,459. This compares to 26 per cent – 1,249 products – a year ago, and in November 2011, 19 per cent – or 627 products.

Moneyfacts puts this growth down to fewer mortgage applicants having more choice than ever before, with the increased competition driving down rates.

In the BTL market, 19 per cent of all deals today come with cashback, which translates to 444 products. A year ago this stood at 16 per cent, equal to 291 products. However, in November 2011, 22 per cent came with this incentive, although the actual number of deals, at 93 products, was much lower.

Of the 444 products highlighted in the BTL market, 266 are available at LTV rates of 70 per cent, 75 per cent, and 80 per cent, which, Moneyfacts says, could be appealing to first-time landlords.

Moneyfacts finance expert Darren Cook adds: “An incentive of cashback to assist landlords in covering the costs of a BTL mortgage is becoming a more prominent feature of the BTL market.

“Especially considering last year’s upheaval in this sector, landlords will be looking for any way to cut costs and increase their margins. It seems that providers are obliging.”

Recommended

Borrowers missing out on cashback: CashbackRemortgages

The number of mortgage products offering cashback incentives has dropped by 82 per cent in the past six months, according to CashbackRemortgages. The broker is urging customers to use specialist remortgaging brokers which split the proc fees they receive with clients. CashbackRemortgages calculates that just 4 per cent on mortgage deals now offer cashback and […]

Money-Notes-Currency-GBP-Pounds-700.jpg

Accord boosts cashback offer on higher value loans

Accord has improved its first-time buyer offers by boosting the cashback available on its 90 and 95 per cent LTV deals. Borrowers with just a 5 or 10 per cent deposit will now be able to get £1,000 cashback. This mortgage range isn’t  just available to first-time buyers, it is also available for those moving […]

arrow, up, point

Sainsbury’s Bank ups fixed mortgage rates

Sainsbury’s Bank has increased rates across its residential purchase and remortgage product range by up to 0.33 per cent. The changes affect the bank’s two- and five-year fixes. The two-year 60 per cent LTV purchase mortgage has seen its rate increased from 1.48 per cent to 1.50 per cent, alongside a series of five-year purchase […]

Could Proptech revolutionise construction?

By Rebecca Murphy, relationship manager, LendInvest  The construction sector offers enormous potential when considering the implication emerging technologies could have on both existing processes and final results. While the completion of an entirely 3D-printed office block may be ‘sexier’ news than a new smart toolbelt that tracks the wearer’s location on site, each area of development […]

Newsletter

News and expert analysis straight to your inbox

Sign up