Back to September 2019

New research by LBS sheds light on mortgage cashback

Stamp Duty, home improvements or immediately starting to pay down their new mortgage are all ways homebuyers would spend cashback from lenders, Leeds Building Society has discovered.

The Society carried out national research* into mortgage cashback deals to find out whether borrowers valued this option and how they would spend this cash, which becomes available on completion.

Practical-minded respondents had four top priorities overall when it came to using cashback from their mortgage deal:

  • 25% would use cashback to cover the costs of removals or storage;
  • 24% would pay legal or other professional fees with their cashback;
  • 24% would put the money straight into overpaying their new mortgage; and
  • 23% would use their cashback to cover maintenance or improvements they were expecting in their new home, such as a boiler service.

There was a difference in behaviour between residential purchasers and Buy to Let landlords.

Borrowers buying a residential property were most likely (32%) to settle professional services’ bills with their cashback, whereas 51% of Buy to Let purchasers favoured putting the cashback straight into overpaying their loan.

Matt Bartle, Leeds Building Society’s Director of Products, said selecting a mortgage is always a personal choice.

He said: “Everyone’s requirements will be individual to them, which is why we offer different combinations of fees, features and incentives across our mortgage product range.

“For that reason we offer incentive packages which give borrowers plenty of choice, not only on the rate and term of their mortgage, but also to help with the other costs of moving home or remortgaging.

“Building on our market knowledge and long experience of mortgage lending, we continue to test ideas and ask borrowers what they need, so we can develop the product deals and lending criteria which will help more people to have the home they want.

“Of course, borrowers can choose how to spend their cashback and it’s positive to see that people would use the funds to cover costs associated with moving and in some cases overpay to reduce the size of a loan immediately.”

Leeds Building Society has a variety of no fee cashback mortgages available, including:

  • 3.49% two year fixed rate Shared Ownership mortgage up to 90% borrower share with £500 cashback
  • 2.49% five year fixed rate Buy to Let mortgage up to 60% LTV (loan to value) with £1,000 cashback


Notes to Editors

*A national survey of 1,224 people was conducted in September 2019

Key Features

3.49% 2 year fixed rate Shared Ownership cashback                                                                

  • Up to 90% borrower share
  • 10% capital free over-repayments permitted each year
  • Initial fixed period followed by a 1.25% discount off the Society’s Standard Variable Rate (currently 4.44%) until 31st January 2025
  • Tapered early repayment charges (3/2%) apply until 31st January 2022
  • These products are available for both purchase and remortgage applications
  • £500 cashback paid on completion
  • Minimum loan of £50,000
  • Available between 25-75% LTV
  • This product is not portable and not available in Scotland

2.49% 5 year fixed rate Buy to Let cashback

  • 10% capital free over-repayments permitted each year
  • Tapered early repayment charges (5/5/4/3/2%) apply until 31st December 2024
  • The product is available for both purchase and remortgage applications
  • Fees assisted legal for remortgages and free standard valuation
  • £80,000 minimum loan
  • £1,000 cashback paid upon completion


To discuss a new case with one of our mortgage development team, mortgage introducers should go to to find details of their nearest Business Developer contact.

Leeds Building Society won the title of Best Shared Ownership Mortgage Lender in the 2019 What Mortgage Awards, its fourth consecutive year of success in this category. It also was named Best Lender for Later Life Lending in the Legal & General Mortgage Club Awards 2019.

The Society operates throughout the UK and had assets of £20.7bn at 30 June 2019 (£19.4bn at 30 June 2018). The UK’s fifth-largest mutual is a Best Companies 2* employer and its head office is in the centre of Leeds, where it has been based since 1886.