Dec
16

Purchasing a property - cash only

From time-to-time houses are marketed as ‘cash buyer only’, meaning that the purchaser must be able to buy the property outright without a mortgage. There are a few reasons why the property is being marketed in this way, including the need for a quick sale, the property is in a poor/derelict condition, or it is of an unusual construction type. There are no hard and fast rules here, each lender has their own approach to managing risk and will want to best protect their security over the property, so if for example, someone was looking to buy a property that has structural issues, or it is in an uninhabitable state, it is unlikely that a mortgage will be secured for it. The HomeOwners Alliance has an interesting article that looks at some of the pros and cons of buying a house for cash here.