Need quikc mortgage offer for auction - not hearing good things about Abbey/Santander

Samtobuk

Hi All,

First post on here as just back onto the property market. Spoke to Abbey today as they seem to have a competitive rate for current customers on a 4 year fixed (4.99%). Got agreement in principle for the max amount we could get on an 85% LTV.

Property we are after is on at auction, but fancy putting in an offer up front. If we do that, we will have 28 days to complete if accepted, just like if we put a bid in at the auction. My concern is that Abbey do not seem to sound as if they can turn valuations and offers around in that kind of time. Granted, the feedback is mixed, but plenty of very frustrated people out there.

So - does anyone know which lenders are consistently good at fast turnarounds? Could go with A&L as they have the same deals, because of course they are part of Santander now. Are they renowned for being any quicker??? If not, then who? Am prepared to take a hit on the rate to make sure we don't lose our dream property.

Any advice gratefully received. Thanks all.

Toby

Samtobuk

Forgot to ask, any advice on how to drive things through quicker? Constant phone calls? Using a branch as I am a current account holder? Can solicitors chase more effectively if I take the hit on their fees??

Ta.

jill2002

Hi,
If you apply through a Santander branch the decision is normally within 15 minutes. The valuation done within 2 days, the offer issued within the week. Quick enough for you?

The broker arm of Santander /Abbey has been particularly slow in the past - it works in a completely different way than the branch - so is not the broker's fault. It is so frustrating for the brokers, they have to go through a business development unit, who then go to the underwriters - different ones to the branch staff !!

opinions4u

Two things to consider:

1) Most auction sales go to cash buyers.

2) If your bid is successful and your mortgage (or legal work) falls through or doesn't arrive in time, you are still legally obliged to complete the purchase. How are you going to do that?

I'd walk away from the idea.

itsakidsworld

I would not walk away from the idea just yet. If you can complete in time then there is no reason why you should not put in an offer pre-auction. Look at these questions:

1. Get the mortgage in principal from the lender.
2. Have in place a solicitor who will inform you of what is required to complete on time within 28 days and make sure you have all this in place.
3. Have a valuer ready to carry out a survey asap.
4. On contact with the auction house(agent) provide them with your offer and show them your paperwork. Tell them that the 28 day exchange is subject to all legal parties completing their work within this time scale. If for any reason there is a legal problem you must be granted an automatic extention as circumstances are beyond your control.

If this is all non-agreeable then as opinions4u suggests- walk away!!! But try first!!! There may be other points to add.

Your rate of 4.99% is excellent by the way- I like it!!

jill2002

If you are buying at auction you must have the 10% deposit in cash and if you are paying for the rest with any part on mortgage - you must have the valuation done before you go to the auction. The offer of a mortgage is not just on whether you can afford the property, it is also important that you know that the lender with lend on that property. Effectively you must have applied for the mortgage and got a mortgage offer in place before the auction.

If you subsequently do not win the property, then of course you have wasted your time and money by getting all this done. With Santander you will normally get a free valuation - so no cost outlay. However, if you do not win the property, you will then have to pay for the next valuation on the property you decide to buy.

Samtobuk

Thanks for the quick feedback guys. I appreciate your point opinions, of course there is a risk gonig for property at auction. I need to weigh up that risk before starting anything.

Have the agreement in principle already from Abbey (and another from Northern Rock a few months back), so not that concerned in terms of the mortgage not being available, more whether I can get it processed in time. I like the sound of your timings Jill, had just read very different things on here! Will definitely go direct to a branch if I do go for this.

I will have to get the survey and searches completed before putting an offer in, as once accepted it is binding as if you were at the auction. I have a very good solicitor from the sale of our house, so am confident I have someone already who can push things through - but will definitely speak to them first to find out what is needed.

Jill - thanks for the extra advice. We have our deposit in hand as currently in rental. If we can get the mortgage offer through as quickly as you suggest (which branch do you work in again?? ) then I can get the valuation confirmed before putting in an offer or going to the actual auction. Well aware that we will have to risk some money on this one, and may come away with nothing, but when you find something that looks like your dream place, I think it is worth a punt. :A

jill2002

Samtobuk wrote: »

(which branch do you work in again?? )

Ha ha, every branch has the same facility - although I appreciate that not all staff are the same :rotfl:

Samtobuk

I have an appointment for monday, so lets see how quickly my local branch can get thins moving!

jill2002

Great. Let me know how you get on.:beer: