When buying a new house – if I have cash back from the developer under 5% of the purchase price – does the mortgage lender have to be informed? – What price is registered on the land registry? - Does this change if the amount of cash back (for deposit or ‘mortgage paid for 12 months’ ‘10k cash back’) if the total is more than 5% of the purchase price? Is there another way to avoid informing the lender legally – such as a separate contact for the cash back?
The mortgage lender will only provide for the property value.
Something to note about cashback - this is often used where sales are slow, and if a discount is already offered, it's worth offering less than even the sale price - cashback price.
Cash back from developer – is it legal?
