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  • FIRST POST
    • p.dowd
    • By p.dowd 11th Jan 18, 11:48 AM
    • 5Posts
    • 2Thanks
    p.dowd
    Loan to become a cash buyer - is this possible? Help please!
    • #1
    • 11th Jan 18, 11:48 AM
    Loan to become a cash buyer - is this possible? Help please! 11th Jan 18 at 11:48 AM
    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
Page 1
    • Comms69
    • By Comms69 11th Jan 18, 11:58 AM
    • 2,970 Posts
    • 2,939 Thanks
    Comms69
    • #2
    • 11th Jan 18, 11:58 AM
    • #2
    • 11th Jan 18, 11:58 AM
    Well have you looked at 25k personal loans, they exist.
    • p.dowd
    • By p.dowd 11th Jan 18, 1:25 PM
    • 5 Posts
    • 2 Thanks
    p.dowd
    • #3
    • 11th Jan 18, 1:25 PM
    • #3
    • 11th Jan 18, 1:25 PM
    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
    • By Comms69 11th Jan 18, 2:09 PM
    • 2,970 Posts
    • 2,939 Thanks
    Comms69
    • #4
    • 11th Jan 18, 2:09 PM
    • #4
    • 11th Jan 18, 2:09 PM
    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!
    Originally posted by p.dowd


    I doubt they'd care what it's for. Once you have it you can use it for whatever you like.
    • NorthernMonkey1
    • By NorthernMonkey1 12th Jan 18, 1:33 PM
    • 241 Posts
    • 970 Thanks
    NorthernMonkey1
    • #5
    • 12th Jan 18, 1:33 PM
    • #5
    • 12th Jan 18, 1:33 PM
    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
    • By p.dowd 12th Jan 18, 1:39 PM
    • 5 Posts
    • 2 Thanks
    p.dowd
    • #6
    • 12th Jan 18, 1:39 PM
    • #6
    • 12th Jan 18, 1:39 PM
    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
    • By edinburgher 12th Jan 18, 2:28 PM
    • 11,147 Posts
    • 59,839 Thanks
    edinburgher
    • #7
    • 12th Jan 18, 2:28 PM
    • #7
    • 12th Jan 18, 2:28 PM
    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
    Originally posted by p.dowd
    Well it's not like you're going to negotiate the price UP
    • pennystretcher
    • By pennystretcher 12th Jan 18, 4:24 PM
    • 386 Posts
    • 1,448 Thanks
    pennystretcher
    • #8
    • 12th Jan 18, 4:24 PM
    • #8
    • 12th Jan 18, 4:24 PM
    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
    Last edited by pennystretcher; 12-01-2018 at 4:40 PM.
    Mortgage free
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