Mortgage timing and cash buyers only

expansion

I am a prospective first time buyer. I have savings which may be able to buy a property outright and at the least serve as a 75% deposit. So, I may need a mortgage up to 25% LTV.

I have read Martin's First Time Buyer's Guide and I would like to make sure I've correctly understood the mechanics. As I understand it, the most that can be done before a property is found is a "a mortgage agreement in principle" which doesn't really mean much. The mortgage can not be secured before this. My area (London) has very quick turnover with some places being "for cash buyers only". The time (is it days or weeks) in doing the mortgage seems to be a disadvantage losing out to those with cash. Is this correct?

Because my savings are so close, my thought is to use credit card loan temporarily and possibly get a personal loan to bridge any outstanding difference and be a "cash buyer".

csgohan4

expansion wrote: »

I am a prospective first time buyer. I have savings which may be able to buy a property outright and at the least serve as a 75% deposit. So, I may need a mortgage up to 25% LTV.

I have read Martin's First Time Buyer's Guide and I would like to make sure I've correctly understood the mechanics. As I understand it, the most that can be done before a property is found is a "a mortgage agreement in principle" which doesn't really mean much. The mortgage can not be secured before this. My area (London) has very quick turnover with some places being "for cash buyers only". The time (is it days or weeks) in doing the mortgage seems to be a disadvantage losing out to those with cash. Is this correct?

Because my savings are so close, my thought is to use credit card loan temporarily and possibly get a personal loan to bridge any outstanding difference and be a "cash buyer".

Seems doable regarding lending on credit card, assuming you don't need to deal with a lender when buying. Just be sure you get a good rate if doing so.


Top marks for doing your research, but cash buyers only properties are cash for a reason, perhaps difficult to get a mortgage on due to issues with property.

AnotherJoe

expansion wrote: »

I am a prospective first time buyer. I have savings which may be able to buy a property outright and at the least serve as a 75% deposit. So, I may need a mortgage up to 25% LTV.

I have read Martin's First Time Buyer's Guide and I would like to make sure I've correctly understood the mechanics. As I understand it, the most that can be done before a property is found is a "a mortgage agreement in principle" which doesn't really mean much. The mortgage can not be secured before this. My area (London) has very quick turnover with some places being "for cash buyers only". The time (is it days or weeks) in doing the mortgage seems to be a disadvantage losing out to those with cash. Is this correct?

Because my savings are so close, my thought is to use credit card loan temporarily and possibly get a personal loan to bridge any outstanding difference and be a "cash buyer".

That's going to be a humdinger of a credit card loan! How much are you looking at? How long until you do this? Might be easier to get a credit card with a big balance and low interest rate and buy absolutely everything on that for a while making minimum payments so you can save.

And how big will the personal loan be? Multiple tens of thousands? Might be difficult to impossible without the Catch 22 of a property to secure against.

And finally as per previous poster, maybe the reason its cash buyers is issues with the property which means you'll have the same problem when selling

davidmcn

I've never seen "cash buyers only" meaning "this property is mortgageable but we want a quick sale" - it almost certainly means that nobody can (easily) get a mortgage over that property for some reason.

expansion

I have 220,000 and I'm looking at properties around 275,000. I could charge up to 35,000 on my credit cards and get a loan up to 25,000 without any issues. It would take me just over 2 years to pay off, interest would be more than a mortgage of course.

I presumed "cash only" was a requirement related to make other deals in the chain work, not an indication of the "mortgageability" of the property. These are entry level flats not in the nicest parts, can't get anything in London under 200,000. So, not "dodgy", but the surrounding demographics (council homes, unemployed, etc.) is not typical London mortgagee/professional/family environment to be sure.