Loan to become a cash buyer - is this possible? Help please!

p.dowd · 11 January 2018 at 12:48PM

Hi all,

Having looked online, I am struggling to find an answer to my query and some information would be greatly appreciated please.

I am looking to purchase a property somewhere between £115,000.00 - £125,000.00ish.

I have roughly £102,000.00 in savings (creeping up each payday) - I want to buy a property as soon as a suitable one is on the market and my offer accepted.

Is there a way I can take out some sort of unsecured loan (rather than a traditional mortgage) which would allow me to be a cash buyer? Ideally the loan would be over a short term, perhaps over 4 - 5 years, with the ability to overpay as much as I can - I then intend to pay it back as quickly as possible, hopefully within two - three years and then be mortgage/debt free.

I am a Conveyancer so the legal costs will be rock bottom... I just don't want a mortgage if it can be helped as that attracts a lot of lender arrangement fees and extra costs which may be avoided - plus it would be brilliant to be mortgage free!

Comments are really appreciated!

Kind regards

Pete

Comms69 · 11 January 2018 at 12:58PM

Well have you looked at £25k personal loans, they exist.

p.dowd · 11 January 2018 at 2:25PM

Hi thanks for your reply.

I have - but i'm not sure if the lender might be funny when they realise its to top up house savings!

Comms69 · 11 January 2018 at 3:09PM

p.dowd wrote: »

Hi thanks for your reply.

I have - but i'm not sure if the lender might be funny when they realise its to top up house savings!

I doubt they'd care what it's for. Once you have it you can use it for whatever you like.

NorthernMonkey1 · 12 January 2018 at 2:33PM

HSBC will lend you 25k, and you can overpay as much as you want. I've borrowed from them before and paid off early.

Not sure what advantage you think youll get from an unsecured loan vs small mortgage on a short variable term

p.dowd · 12 January 2018 at 2:39PM

I've spoken with a mortgage broker at work - given the lower interest rates on a small mortgage and some do not charge arrangement/survey fees - its better to go for a small mortgage over a short term (say 5 years) and overpay it like mad.

Reason I wanted to be a cash buyer was for added power when negotiating DOWN the asking price of a property and to avoid search fees in an area i've lived all my life - however some also offer cashback which will compensate so its a no brainer.

So my query is now answered - thanks to all who commented!

edinburgher · 12 January 2018 at 3:28PM

p.dowd wrote: »

Reason I wanted to be a cash buyer was for added power when negotiating DOWN the asking price of a property and to avoid search fees in an area i've lived all my life

Well it's not like you're going to negotiate the price UP :rotfl:

pennystretcher · 12 January 2018 at 5:24PM

If you are in the MSE Credit Club, check loan eligibility there and also find the best offers without marks in your credit record.
https://www.moneysavingexpert.com/creditclub

You could top up your pot a bit with stoozing - find a zero 0% on purchases on long term card and add what you normally spend into your pot - as long as you pay the minimum payment and then the balance off (or transfer) when 0% deal expires?
https://www.moneysavingexpert.com/credit-cards/stooze-cash-credit-cards

Loan to become a cash buyer - is this possible? Help please!

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