28 Feb, 2019/ by Homeward Legal /Buyer
Cash buyers can save thousands of pounds when buying a house compared to those buying with a mortgage.
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."