Paul Savage training log

Are you sure? You have enough cash to buy a house but the mortgage lenders wouldn't give you a 5 or 10k mortgage? Assuming the house you are looking at is just 30k (i'm being very very cautious on this price as the lwoest i've found in warrington is 40k for 1 bed flat and no way on earht would that get you 450+ rent a month - trust me i'm a landlord!). That would give you a LTV of around 25% and I'm pretty sure almost any compnay would happily loan you that! And a mortgage of 10k over say 10 years would be around 90 a month!

You are either talking out of your arse or you have not looked into this properly! I am more than prepared to offer you some advice

Most mortgage companies have a minimum loan value of £25,000. That said, you'd only need a VERY low income to support that, even based on the newer stricter lending criteria which have just come out. As you say though, with a low LTV most lender would be happy to lend as there's little risk.

Or you are confused on what i've said. For all the properties we have looked at they have wanted cash, no mortgages.

The bank pay the cash, you end up with a mortgage?

Why would someone not want somebody talking a mortgage to purchase a property? They get the money, it's just that they get it from the lender and not the purchaser. It makes absolutely no difference to them.

I agree with you, but there are lots of properties on the market which do specify "Cash buyers only". I can only assume it reduces legal hassle in some way by taking a mortgage lender out of the equation??

Cash sales are usually on properties which wouldn't pass a survey meaning the bank wont lend or a distressed sale where time is of the essence.

This used to be what I did for a living, if Paul has 30/40/50k then he can buy?

I would be very concerned though about a house on the open market which is a cash only purchase.

I have very limited experience in these things but this what crossed my mind as well.

If a bank isn't willing to lend me the money to purchase a property (especially with a low LTV) then I'm damned if I'd be willing to take a punt on it either. Only exception i can think of off the top of my head is a builder purchasing at a rock bottom price to rebuild.

Surely the lack of chain with Paul and Sarah wouldn't result in a completion time much longer than a cash buyer. Again, as a cash buyer I'd still want to get things like searches done so as to know I'm not sat on top of a coal shaft.

I think Paul is maybe looking at a fairly specialist end of the property market which would be better suited to seasoned property investors, not first time buyers.

You would still want to engage a conveyancer (and a surveyor for that matter) wouldnt you?

I am guessing in these 'cash buyers only' cases, the vendor does not want to run the risk that the lender pulls the mortgage offer? Though I agree that in the main I dont think it matters.

Not all the properties wont pass surveys it's just they wont bother with one. All they want is a quick cash turn around. The house we got out bid on is going to sell for 31k or there abouts and 3 years ago sold for 65k. There was nothing structurally wrong with it, could have spent 1k on it before renting.

Paul I don't think you understand the buying process, the vendor doesn't instruct the survey.

If a mortgage is required the lender will instruct.

If its a cash purchase its at the buyers discretion.

Agreed, what exit route do you have with a property that isn't mortgageable?

It would need to be dirt cheap and you just look at the yield/return however still a big gamble.

How did you find this out Paul?

lol