PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Buing home in auction

Options
Hi all,
I am hoping to buy my first home in the summer.
Could anyone advise me about doing so in auctions, also any links to some good ones would be appreciated.
Ta, lipo

Comments

  • bozzy_2
    bozzy_2 Posts: 69 Forumite
    Property Ladder on BBC1 at 9.30am every day is excellent source of info and advice! You would get a good idea of how it all works and what kind of properties you would find on the auction.

    Good luck.
  • painted_lady
    painted_lady Posts: 1,020 Forumite
    500 Posts
    The main thing to know is you already have to have gaurenteed funds in place - most people use cash at auction and although not impossible, unlikely you will be able to buy with long term mortgage. You will also have to pay 10% deposit on the day, just after you win the auction. Again, this is cleared funds, you can write cheque, but the auctioneer might phone the bank to check the money is there. It is usually in the terms and conditions that completion is within 28 working days.
    It totally depends on where in the country you plan to buy - where about are you? Internet searches can bring them up. Best advice is, go to auctions now to see how they work, then you are familiar with the process when it matters. Some auctions require you to pre-register, others dont or only do for certain properties. Also, check the small print of each sale - you can usually look at the solicitors details prior to auction, one property I bought once said I was liable for sellers fees too. There can be hidden aspects like that.
  • lipo
    lipo Posts: 21 Forumite
    I wish to buy in or around London. 10% deposit would just about be possible to get, but for the rest, I need to get a mortgage.
    Thanks such a quick reply, perhaps, as I am going to buy for the first time, it would be easier and safer for me to take the standard, est. agent route?
    lipo
  • It might be an idea to get a traditional mortgage and house purchase for the first time. You would be hard pressed to find a mortagage company to agree to lend you money for an auction property for a few reasons. First, many properties at auction are there because for some reason, mortgage companies wont go near them (need too much work doing, in bad state of repair etc). Then theres the completion within 28 days thing, you would already have to have paid out a lot of money on surveys etc (which the mortgage co would require) before auction, there is no gaurentee you would win the auction, often the starting bids are above the guide price. However, you can sometimes get reposessed properties at auction, can sometimes be good value, but often still need work doing - there is a high demand for auction properties.
    anyway, thats just my experience, some people might disagree, but that the auction world as I see and experience it.
    Good luck.
  • lipo
    lipo Posts: 21 Forumite
    Thank you painted lady, your contribution has brought plenty of light into me case.
    lipo
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.