Hinckley & Rugby Building Society has introduced the 7.5 per cent cashback mortgage.
Aimed at remortgage and first time buyers, the mortgage has a standard variable rate of 7.64 per cent and a maximum loan to value rate of 75 per cent. The 7.5 per cent cashback is not available for house purchases in Scotland or Northern Ireland.
Like many lenders the Hinckley & Rugby's product comes with free accident sickness and unemployment insurance for six months, which is not conditional on any other insurance being taken out.
For borrowers looking for the most comprehensive cashback, 7.5 per cent is quite high, but Northern Rock offers an 8 per cent cashback mortgage, with a standard variable rate of 7.79 per cent and a maximum loan to value of 90 per cent. When comparing redemption penalties the Hinckley & Rugby mortgage comes out on top, lasting for five years of the loan, as opposed to the Northern Rock product, which has redemption penalties for the first six and a half years.