Why tie up your assets?
Amidst the current high-interest rate environment, where cash liquidity leads the way, it’s prudent to consider a strategic approach to property purchases. Instead of committing all your funds outright, there’s a compelling case for taking a mortgage.
Even if you have the available cash and choose to take a mortgage, this approach allows your other assets, such as investments and stocks, to remain unaffected. Moreover, you can avoid incurring break fees for prematurely terminating investment agreements. Additionally, the prospect of forfeiting potential growth from prematurely liquidated investments is eliminated.
What if you urgently need to exchange on your property purchase?
Positioning yourself as a cash buyer affords you a significant advantage in terms of flexibility. Generally, as a cash buyer, you can expedite the exchange process while retaining the flexibility of a later completion. This provides an opportunity to arrange a mortgage which you can take up either pre or post-completion to conserve or replenish your cash savings.
This scenario places you in an advantageous position, making you an attractive prospect to sellers. In contrast, a buyer reliant on a mortgage might face delays due to the intricacies of the mortgage process, therefore preventing them from being able to meet a vendor’s required timescale.
The benefits of an offset mortgage
An offset mortgage presents an opportunity to manage your finances efficiently. It enables you to utilise savings to reduce your mortgage interest whilst retaining liquidity, essentially creating an open line of credit for when you need it most.
The loan structure allows for the possibility of having a nil monthly mortgage payment. This can be achieved by configuring the mortgage as purely interest-only (where possible), capitalising on a full offset arrangement and opting for the offset method that reduces monthly payments.
If you find yourself in possession of ample cash reserves but also require financial fluidity, an offset mortgage might be your ideal solution. This mortgage variant harmoniously combines the benefits of cash availability with the strategic advantages of mortgage utilisation.
For more information on the bespoke mortgage solutions that could benefit you, or to discuss your mortgage needs, please get in touch with our expert advisers.
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
