Can you buy a house with cash?

You can of course buy a house with cash! However, like with most things, it can have advantages and disadvantages.

What does buying a house with cash mean?

Buying a house with cash is jargon for buying a property outright with the money you already have; meaning you do not need a mortgage or loan to buy the property. It doesn’t mean buying a house with a briefcase full of £50 notes, which is what the saying may suggest! A cash buyer must have the money ready at the time of making the offer on the property.

What are the benefits of buying a house with cash?

More reliable buyer

Firstly, it can make the buyer more reliable, having the money upfront can mean there aren’t as many things to go wrong! For example, there are no affordability checks to pass, no chain to be caught up in, no valuations or waiting on funds to be released. All of these can make you a more attractive buyer.


Getting a mortgage can take some time! You have to wait for affordability checks, then the mortgage needs to be approved before the funds are then yours. However, a cash buyer should be able to move straight away as there is no loan to wait for.

More security

When buying a house outright there is no worry about monthly mortgage repayments. This is a lot less stress each month and it means there is always a roof over your head. This also means there is no need for mortgage insurance as the home you own is already yours.

No interest

Of course, the most obvious benefit to buying a house with cash is there is no interest. With all mortgages the lender will charge interest on the loan, buying with cash ensures there is no interest and no other charges, such as an early repayment charge.

What are the disadvantages of buying a house with cash?

Your money is tied up

Buying your home outright is a great achievement, however, it is important to ensure it is what you would like to do for definite. It is a large commitment to make and means you may not have any savings left for emergencies such as vet bills or car repairs, as well as everyday utility and food bills.

It is also important to ask the question: would I still be able to afford the running costs of the house if I was made redundant or I was unable to work? If you are unsure on this, we can help discuss all protection policies that are available such as building and contents or income protection.  

Faults with the house

Occasionally properties ask for ‘cash buyers only’, this can be a red flag! It can indicate that there is an issue with the property meaning it is difficult or impossible to get a mortgage on the property. This is why we would always recommend a house survey, this will highlight any issues and ensure you are putting your money in the right property. The house could be unmortgageable for many reasons – it may be in a high flood risk area or have structural damage.

Offers below the asking price

It is common for cash buyers to ask below the asking price for the property as they know they are in a strong position. Even though this may not be what you were initially asking is always worth asking yourself what is more important; no chain buyer, a quick sale, or waiting for a buyer to offer the asking price?

If you are based in Woking, Camberley, or Surrey and are thinking of buying a house with cash, get in touch to discuss your options. We are always more than happy to help with any of your mortgage and protection needs.

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