Cash buyers saving thousands when purchasing property
Cash buyers can save thousands of pounds when buying a house compared to those buying with a mortgage, according to One77 Mortgages.
Finance specialist One77 Mortgages analysed house price data from the Land Registry to reveal that it costs those buying with a mortgage on average 9 percent more than cash buyers.
Driving a hard bargain
More people buy with a mortgage: mortgage sales volumes across the UK are 138 percent higher than cash purchases.
However, those who have the hard readies to secure a property purchase can drive a better bargain – except in London. The capital is the only region of the UK where cash buyers pay a higher property premium.
In the north-east, those with a mortgage pay up to 25 percent more for their property than those who can buy without a loan. The gap is even wider in parts of Scotland with buyers who have a mortgage paying up to a third more.
Smoother selling process
Alastair McKee, managing director of One77 Mortgages, said:
“Many home sellers will be drawn to a cash buyer as it can often mean a quicker, smoother selling process with less paperwork and no onward chain, which can be hugely appealing to someone that needs a quick sale in particular.
“However, savvy buyers will know they are in this stronger position and, as a result, they will often negotiate more off the asking price than they otherwise would, with the seller tending to accept it, resulting in a lower sold price achieved.
“When considering what works best for you, it’s really down to priorities. If you need to sell quickly, then a cash buyer is the way to go, but if the sold price is more important, it’s worth holding out for an offer at full asking price.”
Kindly shared by Homeward Legal