You can buy a house with cash, providing you have the funds upfront to hand over to the seller. But like anything, it comes with its own advantages and disadvantages. We’re going to run through the pros and cons of buying a house with cash, so let’s start off with the pros.
What are the benefits of buying a house with cash?
More reliable buyer
If you already have the money to buy the house upfront, it means there’s less room for things to go wrong. For instance, you won’t have to pass any affordability checks from the lender, you won’t be caught up in a chain, have to wait for valuations to be carried out, or for funds to be released etc. All of these things make you a more attractive buyer.
As there is less room for things to go wrong, the sale is pretty much guaranteed to go ahead. If you’re the seller, this means you don’t have to worry about things such as your buyer getting their mortgage approved.
Getting a mortgage can take time. Cutting out this part of the process means that a cash buyer should be ready to move more quickly. The only thing you’ll have to wait for is the legal checks and any surveys (if you decide to have a survey).
As you’re paying for the house outright, you don’t have to worry about being able to afford your monthly mortgage repayments. Even if the worst were to happen and you became unemployed, you’d be able to rest assured knowing that you still have a roof over your head.