Buying a house with cash: A swift and streamlined approach to property acquisition
In today’s competitive property market, buying a house with cash has become an increasingly attractive option for those with the means to do so. This method of purchase, which involves acquiring a property outright without the need for a mortgage, offers a range of benefits including speed, simplicity, and potentially greater bargaining power.
Recent data from Zoopla reveals a significant uptick in cash purchases, with cash buyers accounting for approximately 32% of home sales in 2023, compared to an average of 20% between 2017 and 2022. This surge in cash transactions underscores a growing trend in the UK property market, as buyers seek to capitalise on the advantages of mortgage-free purchases.
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The process of buying a house with cash
Purchasing a property with cash follows a similar process to buying with a mortgage, but with several key differences:
Property search and offer: Begin by finding a suitable property and making an offer.
Offer acceptance: Once your offer is accepted, the process moves forward more swiftly than with a mortgage.
Instruct a solicitor: While it’s possible to buy a house without a solicitor, it’s highly advisable to engage one for legal protection.
Property survey: Commission a survey to assess the condition of the property.
Conveyancing: Your solicitor will conduct necessary searches and legal checks.
Exchange of contracts: Pay the deposit and legally commit to the purchase.
Completion: Transfer the remaining funds and receive the keys to your new property.
Advantages of buying a house outright with cash
Opting to buy a property with cash offers several compelling advantages:
Speed: Cash purchases can be completed significantly faster than those involving mortgages.
Simplicity: The process is streamlined without the need for mortgage applications and approvals.
Attractiveness to sellers: Cash buyers are often preferred due to the reduced risk of chain collapses.
Potential for discounts: Cash buyers may be able to negotiate lower prices due to their strong position.
No mortgage interest: Avoiding a mortgage means substantial savings on interest payments over time.
Proof of funds when buying a house cash
When making a cash offer on a house, you’ll need to provide proof of funds. This typically includes:
Recent bank statements
Evidence of investments or savings
Confirmation of gifted money, if applicable
Proof of property sale proceeds, if relevant
Estate agents and solicitors may request to see this documentation to verify your ability to complete the purchase.
Fees when buying a house with cash
While cash buyers avoid mortgage-related costs, there are still several fees to consider:
| Fee Type | Typical Cost |
|---|---|
| Stamp Duty | Variable based on property value |
| Solicitor fees | £850 – £1,500 |
| Survey costs | £400 – £1,500 |
| Land Registry fee | £20 – £910 |
| Removal costs | £400 – £1,200 |
It’s important to budget for these expenses when planning your cash purchase.
How long does it take to buy a house with cash?
As a cash buyer, the quickest time one can complete and exchange on buying a residential property in the UK can be as little as 14 days. However, a more realistic timeframe is typically between 30 to 60 days. This speed is one of the primary advantages of cash purchases, as it eliminates the delays associated with mortgage approvals and property chains.
Can I buy a house without a mortgage?
Yes, you can buy a house without a mortgage if you have sufficient funds to purchase the property outright. This is known as a cash purchase and can offer several advantages, including a faster completion process and potentially stronger negotiating power.
Is it better to buy a house with cash?
Buying a house with cash can be advantageous in many situations. It eliminates the need for mortgage payments and interest, simplifies the purchase process, and can make your offer more attractive to sellers. However, it’s important to consider your overall financial situation and goals before tying up a large sum of money in a property.
Can you buy a house with cash and no job?
While it’s possible to buy a house with cash and no job, you’ll still need to demonstrate the source of your funds. Lenders and solicitors may require proof of how you acquired the money to ensure compliance with anti-money laundering regulations.
Additionally, consider ongoing costs such as stamp duty and council taxes and maintenance when making this decision.
Why do solicitors need 6 months bank statements?
Solicitors typically request 6 months of bank statements as part of their due diligence process. This helps them verify the source of funds for the property purchase and ensure compliance with anti-money laundering regulations. It also allows them to identify any unusual transactions that may require further explanation.
Thinking of selling?
Become a cash house buyer by selling your current property to Property Saviour, where we buy any property, ensuring a quick and guaranteed sale. This approach is ideal if you’ve inherited a property, need to downsize quickly, or face financial difficulties.
If you need a guaranteed sale to secure your financial future, we are the ones to trust.
By selling your home for cash, you’ll be in a strong position to purchase your next property outright, potentially saving time and money in the process. Whether you’re dealing with a probate sale, relocating for work, or simply want to avoid the uncertainties of a traditional property chain.
Make an enquiry with Property Saviour today to explore your options and become a cash buyer yourself.
Sell with certainty & speed
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
