Mud-club

Chat & Social => The Bar - General Chat => Topic started by: automania on August 23, 2009, 19:50:08

Title: Need advice on buying houses at auction
Post by: automania on August 23, 2009, 19:50:08

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

Title: Re: Need advice on buying houses at auction
Post by: generation-x on August 23, 2009, 20:10:02

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

Title: Re: Need advice on buying houses at auction
Post by: Mutz on August 23, 2009, 20:44:52

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.

Title: Re: Need advice on buying houses at auction
Post by: redhand on August 23, 2009, 20:58:35

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.

Title: Re: Need advice on buying houses at auction
Post by: automania on August 23, 2009, 22:04:09

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.

Title: Re: Need advice on buying houses at auction
Post by: bastynitch on August 23, 2009, 23:09:12

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

Title: Re: Need advice on buying houses at auction
Post by: Range Rover Blues on August 24, 2009, 01:45:24

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.