Need advice on buying houses at auction

[automania]

Just wondering what the deal is, there's a house near me Ivethought about buying an it's now going to auction. I'm wondering what the process is in regards to getting the money for it, can you do it via a mortgage etc? Or is it cash only? Ill be a first time buyer, cheers mike

[generation-x]

hi m8
from wot ive seen on the tv
you must have the mortage in place or funds to buy out right
i cud be wrong,
i doubt in this current climate you will get a mortage offer for a house selling at auction


simon

[Mutz]

You need funds in place before the auction starts.

Its as any other auction, on the fall of the hammer, youve bought it; you dont get to sort the money out after youve bought it.

Beware tho; you can get carried away.

[redhand]

All you need to do is  get your bank manager to approve a bridging loan until you can arrange a mortgage or set up a mortgage on approval. Basically the Building society agrees to give you a mortgage on the property if you win the auction. If you don't win all you've lost is the setting up fee's. You'd need to get a survey done of course before the auction so that you didn't buy a lemon and because the mortgage will be subject to a survey been carried out anyway.

[automania]

Cheers redhand that's what I didn't understand, last time i spoke to the mortgage people they didn't do mortgage promises so couldn't understand how it worked, hot it now. Cheers everyone.

[bastynitch]

deffo need funds first- before buying , because im looking along that line too ! ;)

[Range Rover Blues]

You should be able to sort out some kind of agreement in principle, even if it is a comercial mortgage (though even these are hard to get at the moment) if you can prove you have liquid funds to meet the deposit.

You then know you rbudget and the proof of agreement is what you take to the auction.

AFAIK you still need a solicitor to process the purchase so unliek a car you don'tpay for it on the day, might be worth finding a solicitor beforehand too.