Auction Property - Can i pay for it on a Mortgage ?

sanju

Me and my brother have started to buy houses in East London and was wondering if we can buy houses that are up for auction by mortgage or dose it have to be paid in one go?

Many thanks

divadee

As far as i know you have to pay the deposit at the auction (think thats about 10%) as at that point it is when you have exchanged contracts. And then the balance within 28 days this is when you complete. If you do not pay the balance within 28 days you lose your deposit.

It depends if you could get your mortgage company to do everything they have to do within 28 days. unlikely i think, but could possibly be done.

Doozergirl

It's a lot more risky to get the property mortgaged in 28 days, but possible. You'll have to be confident of your solicitor and of your mortgage company.

It's also imperative that you have a survey carried out before the auction as any problems with the property that could potentially cause the mortgage company to retain funds will lose you the house and cost you your deposit and potentially more.

I wouldn't do it!

nmiah786

sanju wrote:

Me and my brother have started to buy houses in East London and was wondering if we can buy houses that are up for auction by mortgage or dose it have to be paid in one go?

Many thanks

Just out of interest which part of East London do you buy in and how are you finding the prices?

*Sparkle*_3

I believe a draw down mortgage would be the best possible way, research these types of mortgages.

kinster_2

Of course you can get a mortgage for auction property. That's how a lot of people finance their purchases. You just need to state to the lender and get a solicitor that has experience with Auctions.

Buying Bargains at Property Auctions by Howard Gooddie explains it all