PEOPLE in Britain who buy a home with a mortgage pay on average nine per cent more than those paying with cash, new research has found.

The study from finance specialist One77 Mortgages looked at the average cash and mortgage buyer house prices from the Land Registry and how much higher or lower the average mortgage house prices was, compared to those funded by a cash purchase.

With interest rates remaining at affordable levels and house prices at not so affordable levels, they said it should be no surprise that mortgage sales volumes across the nation are 138 per cent higher than cash sales volumes.

However, despite slower market conditions and the ease of dealing with cash buyers over those with a mortgage, the average house price for cash buyers is still nine per cent lower than mortgaged average house price levels.

The report explains that there are a couple of factors that can see the average cash sold price exceed that of mortgage sold prices in an area.

Property prices could be more realistic, or buyers could have pockets deep enough to front the cash as is the case in some areas of prime central London such as Westminster.

There’s also the chance that more properties in that area are unmortgageable and therefore competition from cash-only buyers will push up the cash sold prices statistics.

This is often the case in the remote and sparsely populated Scottish islands, where lenders won’t go due to the tricky geographical factors and lower demand for property.