Usually to get a mortgage you have to part with your cash to cover booking and arranging fees, but Lloyds are offering new customers an impressive £500 cashback incentive to switch mortgages.
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The £500 cashback offer
To be eligible for the offer you need to remortgage to Lloyds from another lender, and you need to apply before 2 January 2017.
You will then recieve the £500 through your conveyancer once your application for a qualifying Lloyds mortgage has completed.
What about the remortgaging fees?
Lloyds offer a wide range of mortgages with no application fees, but their lowest rate mortgage offer comes with a fee of £995.
So if you want to spend the £500 cashback, rather than consider it a discount from the application fee, make sure to apply for a mortgage with no fee.
Lloyds also arrange and pay your basic legal fees through their “eConveyancing service”.
Valuation and surveying fees
The valuation fee becomes a bit more complcated. Lloyds give a basic “level 1 valuation report” for free to all mortgage applicants, though this is an offer and may be “withdrawn at any time”.
A more detailed “level 2 survey and valuation” will cost you a staggered amount (between £200 and £1,150) depending on your property value.
Note that uSwitch tables will display the potential full cost of surveying without any conditional discounts applied.
Having a survey completed will give you guidance on any defects and problems that are serious or that may significantly affect the value of your home, but you may not want or need this if you are just remortgaging.
Is it worth it?
If you want £500 upfront or as a discount off of your fees, this is by all accounts a very sweet deal.
Though the best Lloyd’s initial rates available are distinctly mid-market compared to the market leading offers, which are currently around 1%.
But, a mortgage is not just for [a cashback offer around] Christmas, so make sure you carefully examine all the costs, rates and repayments over the full term of the mortgage, as well as thinking about the service you’d like to make sure it’s the right deal for you before your commit.
Also make sure to consider any exit or early repayment fees from your current mortgage.
Compare Lloyds mortgages
Take a look at the full range of mortgages provided by Lloyds bankLloyds mortgages
Are there other cashback deals?
There are several other mortgages offering a cashback incentive available so it’s worth shopping around, but the Lloyds offer is one of the highest cashback offers you can get for switching to a new mortgage lender.
Mortgages with no or low fees
If you’d like to remortgage and avoid any booking or arrangement fees there are many mortgages available, though it would be unusual to find a mortgage that is completely fee free to switch to, unless the lender has a special offer like the Lloyds mortgage.
Lowest rate mortgage
It’s worth checking deals with the lowest initial rates too, as mortgage rates are currently at historic lows with several bargains to bagged at the moment.
But make sure to consider the full cost of the mortgage rather than being drawn in by showy discounts and deals.