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Buying at auction - advice needed.

kgall
Posts: 57 Forumite
Hi,
After a couple of abortive attempts (and following advice from the kind folk on here) we have found an auction property and have got a mortgage offer and had the survey done. The mortgage offer is for £150k, and they have indeed valued the property at that price.
1. Am I correct in saying that this is now guaranteed? i.e. if we win it for £150k or less then we can use the mortgage.
2. The mortgage is with the Halifax, it is a 90% LTV with a fixed 3 year rate of 6.59%, sound OK?
3. What else do I need to do before the auction? I know I need to get a solicitor but how do I go about finding/choosing one?
Thanks in advance,
K
After a couple of abortive attempts (and following advice from the kind folk on here) we have found an auction property and have got a mortgage offer and had the survey done. The mortgage offer is for £150k, and they have indeed valued the property at that price.
1. Am I correct in saying that this is now guaranteed? i.e. if we win it for £150k or less then we can use the mortgage.
2. The mortgage is with the Halifax, it is a 90% LTV with a fixed 3 year rate of 6.59%, sound OK?
3. What else do I need to do before the auction? I know I need to get a solicitor but how do I go about finding/choosing one?
Thanks in advance,
K
0
Comments
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After a couple of abortive attempts (and following advice from the kind folk on here) we have found an auction property and have got a mortgage offer and had the survey done. The mortgage offer is for £150k, and they have indeed valued the property at that price.1. Am I correct in saying that this is now guaranteed? i.e. if we win it for £150k or less then we can use the mortgage.2. The mortgage is with the Halifax, it is a 90% LTV with a fixed 3 year rate of 6.59%, sound OK?3. What else do I need to do before the auction? I know I need to get a solicitor but how do I go about finding/choosing one?
You need to appraise the solicitor that it's a purchase via auction and make them aware of potential completion deadlines that could apply. It would be wise for the solicitor to start doing the searches asap to ensure there are no delays.
Out of interest, how have you managed to get a mortgage offer without a solicitor being named on the application? I'm a little concerned that you've only had a mortgage promise (AIP) so far. That is certainly not good enough to allow you to complete within the timescales needed for an auction purchase.
I still think the most likely outcome here is that somebody else will get the house and you'll lose all the fees you've handed out. This is what happened to every single one of the mortgage applications I took where property was being bought at auction. None of them ever needed to complete.0 -
MortgageForce wrote: »Kgall - as pointed out above, several factors seem all wrong in this case and I would recommend you take careful note of opinioms4u's comments.
The one certainty is there are no certainties when buying at auction.
it is a brave person who buys at auction via a mortgage.
Even if they are happy to lend the funds, what if their surveyor gives the property the thumbs down ? :eek:I am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Don't forget the fees and buyers commisions.
The max bidding price need to reflect costs.0
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