Abbey mortgage offers 1% cashback every two years

Called the Reward Mortgage, the new deal has a guaranteed lifetime tracker rate of 1.24% above the Bank of England base rate – currently set at 4% - and pays at least 1% cash back on the remaining mortgage balance every two years. Based on this cash back payout, the average 25-year £100,000 repayment mortgage should see cash back payouts of around £7,000, according to Abbey, which could in turn cut the mortgage period by two years, to just 23 years, providing the cash back contributes to interest rather than capital repayment. Along with cash which could pay the loan back early – alth...