Abbey offer cashback mortgage

Customers now have the opportunity for a cash payout from their mortgage every two years, worth one per cent of their outstanding debt.

14:17 16 April 2004

Customers now have the opportunity for a cash payout from their mortgage every two years, worth one per cent of their outstanding debt.

The cash-back scheme allows borrowers to either channel the money back into their mortgage, thereby paying it back sooner, or receive a lump sum. Abbey emphasises that there are no booking fees and the Reward Mortgage is portable - so customers need not worry about losing these benefits should they move.

Abbey's customer director, Angus Porter, said: "The Reward Mortgage is a genuinely new approach to rewarding loyalty. We think it's a great new choice for people who don't want the cost and bother of re-mortgaging every couple of years."

As well as the cashback the plan has the added incentive of a guaranteed lifetime tracker rate of 1.24 per cent above the Bank of England base rate.

The scheme additionally offers homeowners the chance to borrow more money for home improvements - they can simply ask for a loan, which is linked to the reward mortgage and therefore also pays one per cent cash back every two years.

In December 2003, Abbey launched another initiative aimed at rewarding customers: the 'guaranteed deal for life' mortgage enabled them to pay just half a per cent above the Bank of England base rate for the life of the mortgage.