Bradford & Bingley launches new cashback mortgage

24 May 2005
Bradford & Bingley has announced that it is offering borrowers an exclusive tracker mortgage, offering three per cent cashback.

The UK's leading high street mortgage broker's new cashback mortgage, funded by the Coventry Building Society, offers three per cent cashback payable on completion, to a maximum of £30,000.

Rates start at 5.74 per cent, and track the Bank of England base rate of +0.99 per cent until September 30th 2010, when the loan reverts to a privileged variable rate of 6.53 per cent for the remaining term (equalling 6.5 per cent APR).

According to Bradford & Bingley, the cashback option will appeal both to first-time movers, who can use it to offset the crippling cost of stamp duty, and to remortgagers.

"The cashback element in particular offers a helping hand for first time movers, who may have benefited from the house price growth of recent years and now enjoy a healthy level of equity within their property, but are now faced with much larger moving costs," said Duncan Pownall, mortgage development manager at Bradford & Bingley.

"For those remortgagers who are looking to improve rather than move, the cashback also provides a great option. It enables borrowers who don't wish to eat into any equity they have built up in their home but would like to raise capital to help fund a project, providing them with extra funding at a competitive rate without taking out a personal loan."

The cashback mortgage allows a maximum loan to value (LTV) of 75 per cent.

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