A cashback mortgage does what it says on the tin and literally gives you some cash back.

This is typically a lump sum worth between 2% and 6% of your mortgage loan, although there have been deals offering up to 10% of your loan value. Usually the cash payment is made once you have completed your first month's repayment on the mortgage.

Generally cashback mortgages charge much higher % rates than standard rate deals and you often incur penalties if you want to repay or switch your loan within a set period of time.

Pros: The cash lump can help with moving expenses and equipping a new home.

Cons: As you can imagine, the mortgage lenders are not daft and you will pay for this benefit in other ways. Be mindful of higher interest rates and hefty early repayment charges/ redemption penalties. And don't forget, it's still extra borrowing at the end of the day.