While they can sometimes represent a good deal you do need to research your options thoroughly.

This is because the cashback typically advertised as a reward for taking on a cashback mortgage is not a completely free lump sum. The reality is that it is part of the interest you will pay during the course of the loan will cover this cost.

For this reason cash back mortgage rates are typically higher than those offered by other equivalent mortgage deals; this is largely to cover the cost of the cash offered at the beginning of the mortgage.

These kinds of mortgages are generally seen as a being the perfection solution for first time buyers looking to get on the property ladder. This is because the cash back on mortgages can be used to pay the various fees associated with moving into your first home as well as buying the contents to furnish it.

However, unfortunately things aren't straight forward and you need to work out the total cost of a cashback mortgage over the deal term - including fees and charges - and compare it to the best mortgage deals that don't offer cashback.

In the long run, going for the cheapest deal overall will be better financially, even if a cashback mortgage will give you more money to DIY with when you first move.

Finding the best mortgage deals is essential because it's not only the mortgage rates that differ. The fees, terms of the agreement and the repayment schedule are all things that will vary from provider to provider and deal to deal so all need to be taken into consideration.

There are a great deal of cash back mortgage providers in the UK but when researching the best for your circumstances, it's important not to just take the deal that offers the cheapest interest rate or highest cashback rate.

It may sound good at first glance but until you have looked at multiple mortgages, it is very unlikely that you are able to get the best cashback mortgage.