Full list of banks and building societies offering first-time buyers up to £2,000 cashback
A NUMBER of banks are offering first-time buyers cashback on their mortgage deals worth up to £2,000.
Skipton Building Society is the latest lender to offer borrowers money when taking out a qualifying deal.
Accord Mortgages, Yorkshire Building Society and HSBC all have deals on the market offering cashback worth up to £2,000.
Cashback on mortgage deals can be a useful financial boon to cover the cost of legal fees or any renovation work you’ve got planned.
The money is usually paid to you upon completion of the mortgage.
But, of course, you should always factor in all costs and don’t be ensnared by pound signs.
Comparison site Uswitch says cashback mortgages don’t usually offer the best rates which could cost you thousands more in the long-term.
If a cashback mortgage has a higher product fee this can bump up the overall cost too.
That said, if you are considering a cashback mortgage for the upfront cash injection, here is the full list of lenders currently offering them for first-time buyers:
- Skipton Building Society – £1,500
- Accord Mortgages – £2,000
- Yorkshire Building Society – £2,000
- Hanley Building Society – £2,000
- HSBC – £1,600
- Nationwide Building Society – £500
- Coventry Building Society – £1,000
- West Brom Building Society – £1,000
- Royal Bank of Scotland (RBS) – £1,000
HOW TO SAVE MONEY ON A MORTGAGE
There a number of factors involved in getting the best mortgage deal, but some fail safe details should see you pay less overall.
In most cases, the larger the deposit you lay down, the better mortgage rate you will be offered.
The same rule applies if you are remortgaging and your loan-to-value has changed.
Your loan-to-value is the amount you have borrowed versus your deposit amount.
A boost in your credit score can up your chances of being offered better mortgage rates too.
There’s a number of ways you can boost your credit score if it is, including signing up to the electoral register.
It’s always worth using a mortgage comparison tool to check out the best deal on the market too.
MoneySavingExpert.com has a useful tool you can use to work out how much a specific home loan would cost you overall when considering product fees and mortgage rates.
Another way to save money on your mortgage is by getting a broker in to find the best deal for you.
Most charge a flat fee for their services, or commission based on how much you have borrowed, usually between 0.3% and 1%.
But if it means saving thousands of pounds on your mortgage overall, it can be worth the initial up front cost.
What will happen to mortgage rates in the future?
Mortgage holders were handed a boost on Thursday after the Bank of England (BoE) cut its base rate from 5.25% to 5%.
But what will happen over the rest of the year?
Millions of homeowners have faced higher rates after coming off deals they initially fixed when rates were low, and first-time buyers have found it harder to get on the property ladder.
Those on fixed mortgages have seen bills go up by £3,000 a year as their deals end, according to Moneyfacts.
The latest figures from UK Finance reveal around 700,000 fixed-rate deals are still due to end in the second half of the year.
But despite, interest rates falling, it is unlikely they will fall to the levels seen a few years ago.
Nick Mendes, from John Charcol, previously told The Sun: “We are unlikely to see the days of 1% or 2% mortgage rates again.
“It’s important to plan and budget accordingly, considering more sustainable and realistic interest rates moving forward, to avoid delaying a purchase or ultimately setting yourself up for disappointment.”
The average two-year fixed residential mortgage rate on Friday was 5.76%, according to Moneyfacts, down from 5.79% on Monday.
Meanwhile, the average five-year fixed residential mortgage rate was 5.37%, down from 5.40% on Monday.
The BoE cutting the base rate on Thursday will offer some relief to mortgage holders.
However, there is still some volatility in the market and no guarantee rates will fall further.
What is happening to house prices?
Knowing when is the best time to buy a house can be a tricky business. Here's what is happening with house prices this year...
There were mixed predictions among lenders and estate agents for whether house prices would go up or down in 2024 at the start of the year.
HSBC and Nationwide said property prices would remain flat while Halifax, Rightmove and Zoopla projected drops of between 1% and 3%.
Lender Knight Frank was more optimistic, predicting house prices would rise by 3% while Nick Mendes, from broker firm John Charcol said he expected an increase of 2% to 4%.
The latest data from the Land Registry shows in actual fact prices have risen by 2.2% between May 2023 and the same month this year, with the average UK house price standing at £285,000.
In the 12 months prior, house price growth increased by 0.7%.
It comes with the Bank of England’s (BoE) base rate at a 16-year high of 5.25%, adding pressure to homeowners.
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