Record-low interest rates have helped boost an influx of buyer demand with many taking advantage to borrow more than they may have in different market conditions. As a result, the average price of mortgage funded property sales is now 10% higher than properties purchased by cash buyers in Great Britain, according to Enness Global.
Group CEO of Enness Global Mortgages, Islay Robinson, commented:
“Record low rates and the additional carrot of a stamp duty reprieve have caused buyer demand levels to increase at a rapid pace. With those securing a mortgage currently able to do so at such favourable rates, many are borrowing that little bit extra to either buy bigger or in a better area.
“The consequence of this is, of course, a higher price paid by mortgage-backed buyers and in any market conditions, paying with cash is always going to enable you to strike a better deal anyway.