Wealthy buyers are purchasing properties with cash rather than taking advantage of the super-cheap large mortgage loans.
Recent figures from HM Land Registry show cash buyers accounted for between 30% and 40% of all property transitions across Great Britain.
For many wealthy clients, cash is king and they like to have liquid funds available. By purchasing a property with a mortgage they keep hold of more money and spread their risk.
Larger mortgage loans can help buyers keep their overseas investments particularly if they do not want to sell them to fund a purchase.
Aaron Strutt, product director at Trinity Financial, says: “Our broker regularly speak to clients who are purchasing properties with cash, and we explain to them how cheap rates are and how quickly we can arrange mortgages. Trinity recently arranged a £5 million mortgage for a client in seven working days.
“Wealthy clients taking mortgages could bypass currency fluctuations and avoid transferring large amounts of money from overseas, or use their cash for tax and inheritance planning.”
London has the lowest proportion of cash sales (around 25%), while the South West has the highest (around 40%).
Source: HM Land Registry
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