Cash buyer?

Aliss08

Hi,

I feel silly for asking this but am I a cash buyer if I’m downsizing and won’t need a mortgage for my next move? Thanks

Megaross

Yes. No mortgage = cash buyer

KiKi

You're a cash buyer if you're not taking a mortgage, and have the funds in an account, yes.  If you're relying on the sale of a property to access that cash, it's not strictly a cash purchase as you don't have that cash at the point of making an offer, and you wouldn't be classed as a cash buyer.

powerful_Rogue

Cash buyer with a chain.

babyblade41

A cash buyer is what it says it is...cash at bank. 

If no mortgage is required but dependent  on a sale of your house then no, not really a cash buyer as if your sale falls through then you can't buy your onward purchase 

eddddy

Who's asking if you're a cash buyer and/or who do you want to tell?

If it's an estate agent, just say "I'm buying without a mortgage, but I have a property to sell (which is currently under offer)" or whatever is the case.

So you'll answer 3 of the estate agent's questions in one go - and reduce the risk of any misunderstandings.




Edit to add...

If it's because you've seen a property advertised as "Cash Buyers Only" - that's usually just a 'code' for "The property isn't mortgageable".

So the fact that you have a property to sell might not put the sellers off.

(But you should be careful about buying a property that isn't mortgageable!)

canaldumidi

No. Downsizing so dependant on a sale.

You do not have cash in the bank so not a cash buyer.

NameUnavailable

canaldumidi said:

No. Downsizing so dependant on a sale.

You do not have cash in the bank so not a cash buyer.

But they will have cash when they sell. Generally it means no mortgage, so less chance of problems due to the lender downvaluing etc.

JReacher1

I don’t think they’re what a seller would class as a cash buyer. A cash buyer in my opinion is someone in no chain or with money in the bank to buy a property. There are no dependencies and can provide the funds when required. In this situation they’re in a chain so not what I would call a cash buyer. 

To a seller there is no real difference to an OP’s situation than there is to someone who needs a mortgage to buy. 

NameUnavailable

JReacher1 said:

I don’t think they’re what a seller would class as a cash buyer. A cash buyer in my opinion is someone in no chain or with money in the bank to buy a property. There are no dependencies and can provide the funds when required. In this situation they’re in a chain so not what I would call a cash buyer. 

To a seller there is no real difference to an OP’s situation than there is to someone who needs a mortgage to buy. 

I was a cash buyer but the EA's didn't seem to see that as any real benefit, no preference in viewings etc. I expect they prefer people who need mortgages because they might get them to go via their broker and earn more commission!

JReacher1

NameUnavailable said:

JReacher1 said:

I don’t think they’re what a seller would class as a cash buyer. A cash buyer in my opinion is someone in no chain or with money in the bank to buy a property. There are no dependencies and can provide the funds when required. In this situation they’re in a chain so not what I would call a cash buyer. 

To a seller there is no real difference to an OP’s situation than there is to someone who needs a mortgage to buy. 

I was a cash buyer but the EA's didn't seem to see that as any real benefit, no preference in viewings etc. I expect they prefer people who need mortgages because they might get them to go via their broker and earn more commission!

Probably depends on how popular the house is as well or whether the estate agent thinks the house is overvalued. 

As you say though not really sure what the benefit is though of being a cash buyer. For the majority of houses if it’s a normal house with nothing unusual about it then it should be easy to get a mortgage.