The turmoil has pushed mortgage repayments out of reach for many hopeful buyers, who have been forced to shelve their purchase until rates drop again. Sellers keen to complete are nervous of rising mortgage rates causing purchases to fall through, experts warned, giving cash buyers a fresh edge.
Polly Ogden Duffy, of estate agents John D Wood & Co, said: “Cash certainly remains king in a market with spiralling mortgage rates.
“Where possible the cash buyer provides a more solid option for a seller, versus a buyer who may be yet to lock in their mortgage rate. Today’s affordability could be out of reach tomorrow.”
Buyer demand had already fallen in every county between June and September, before the recent mortgage market chaos accelerated the downturn, according to recent data by PropCast, a data company.
Marc Schneiderman, of estate agency Arlington Residential, said he had seen two recent sales where cash buyers purchased homes despite offering less than buyers who were dependent on mortgages.
Mr Schneiderman said: “Sellers just don’t want the uncertainty. Definitely we’ve seen a marked increase in buyers using the fact that they are purchasing with cash in order to negotiate strongly on prices.”
