About house auctions.....

xangeleyes

Sorry if this is a basic question, but I was wondering, if my husband and I went to a house auction and successfully bought the house in question, I know we need to provide a deposit, but do we need to pay for the rest of the house within days, or can we then get a morgage (sp) out on it over 'x' amount of years?

We've seen this lovely house for auction, but couldn't afford to buy it out right.

Thanks

Rachel xxx

blackshirtuk

you can get a mortgage, but you normally have to "complete" within 28 days. There are lenders that will agree an ammount in principle before the auction, but you have complete in 4 weeks or there are quite severe penalties.

You really need to be 100% sure you can get the monet before bidding. You need to start researching finance asap!

sonastin

Buying at auction if you need a mortgage is risky. As blackshirtuk says, you are committed to completing within 28 days if you make the highest bid. If for some reason there is a problem getting the mortgage, you are in trouble. The only way to realistically go for it, and in some cases I think the only way the auction house will let you bid, is if you have the mortgage offer in place. This means that you have to pay arrangement fees and valuation fees before you go into the auction with no guarantee that you'll be the one to make the highest bid.

poppysarah

You need to get finannce in place, get surveys done before hand, get solicitor to read legal pack too.

You put a deposit down and if you can't get funding when you've won you say goodbye to your deposit.

tyllwyd

And remember that if it is a lovely house, they may have set the guide price deliberately low to generate interest - it may not be as much of a bargain as you think it will be.