This mortgage comes with a cash sum that’s paid to you once your purchase or remortgage has been completed and your mortgage is in place.

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The amount you receive is normally expressed as a percentage of the amount you have borrowed, although it can be a fixed amount. It’s important to be aware that this type of mortgage may not be offered at a competitive rate and might mean that you’ll be paying higher monthly payments as a result.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.