There are currently 1,315 cashback deals on the market, up from 939 in May 2017, according to Moneyfacts research.
In the last fortnight, Barclays, Coventry Building Society, Leek United Building Society, Loughborough Building Society, Sainsbury’s Bank, West Brom Building Society, and Yorkshire Building Society have all launched or improved their cashback deals.
Borrowers can earn, on average, £83 more in cashback today than they could 12 months ago, with the average jumping from £366 to £449. But the highest sum available has fallen to £1,500 from £2,500.
Improved incentive packages will offer some relief to borrowers who have been met with rising mortgage rates in recent months.
Rachel Springall, finance expert at Moneyfacts, said: “This will be great news for borrowers looking to cover the cost of moving, or to pay for the fees of instructing their own solicitor to handle legalities. Still, out of the entire mortgage market, only 28% of the deals offer a cashback incentive, so there is much more room for improvement.”
The study suggests most cashback on mortgage deals are aimed at borrowers with smaller deposits or equity. Some 64% of all deals on the market are available to borrowers with a deposit of between 5% and 20%.