A new cashback mortgage has been launched by Bradford & Bingley, offering borrowers an exclusive three per cent cashback tracker. Coventry Building Society is funding the cashback tracker mortgage offered by Bradford & Bingley, which has an initial rate of 5.74 per cent. This is worked out from the addition of the Bank of England base rate of 4.75 per cent plus 0.99 per cent for the next five years until September 30th 2010.After this time the loan reverts to a variable rate of 6.53 per cent for the remaining term (6.5 per cent APR).

“The three per cent cashback tracker mortgage will appeal to both homemovers and remortgagers,” explained the mortgage development manager at Bradford & Bingley, Duncan Pownall. “The cashback element in particular offers a helping hand for first time movers, who may have benefited from the house price growth of recent years and now enjoy a healthy level of equity within their property, but are now faced with much larger moving costs. “Mr Pownall added: “For those remortgagers who are looking to improve rather than move, the cashback also provides a great option.