Cashback

Standard variable rate with cashback

How it works
Same as standard variable rate loan (see above) but you receive a substantial sum (for example, 3-5% of the amount borrowed) shortly after you take up the loan.

Early repayment charge?
Yes, you will normally have to repay some or all of the cashback if you repay the mortgage in the early years.
 
Is it for you?
Yes, if you need a large cash sum - for example, to buy furniture.
Yes, if you expect the cash sum to more than compensate for any interest rate rises during the penalty period.
No, if you would be unable to cope with increased payments due to rising interest rates.
No, if you can manage without the cashback now and can get a better overall deal elsewhere.