This is a mortgage in which the Lender refunds a sum of money, either as a percentage of the loan or a flat figure, to the borrower upon completion. With this type of offer the borrower will typically be tied to the Lender's SVR by early repayment charges necessitating repayment of the cashback if the loan is repaid within a set period. Or, the borrower is taking a higher then par rate mortgage rate offered. In this case the more cash credit received the higher rate is issued.
Note: The max cash credit should not be more then 2% of the loan amount.