Cashbacks can help lifetime mortgage clients in two ways: reducing the loan amount needed and potentially the overall borrowing cost; or providing more funds in addition to the loan.
Greater flexibility by topping up the loan
Cashbacks are paid in addition to the loan amount so they can boost the maximum funds available.
Borrow less to get the fund required
Cashbacks mean clients can borrow less and still get the funds they need. A smaller LTV could mean a lower interest rate.
Extra cash to pay for advisers and solicitors’ fees or other costs
Clients could use the additional funds to help cover some costs – including advisers and solicitors’ fees.