Has anyone tried / considered the following approach:
E.g. current mortgage 200k outstanding on property worth 300k. Switch and remortgage for 250k, redeem cashback and then immediately pay back 50k off new mortgage, earning yourself an extra 1k in switching cashback.
- Say your current LTV is 60% ballpark and you're looking to switch mortgage;
- Get property valued (required anyway) and request new mortgage amount at 80% of new valuation;
- Request variable rate mortgage;
- Redeem cashback at 80% of value of property;
- Make large repayment on mortgage to bring the loan back to your original LTV
E.g. current mortgage 200k outstanding on property worth 300k. Switch and remortgage for 250k, redeem cashback and then immediately pay back 50k off new mortgage, earning yourself an extra 1k in switching cashback.