Firm mortgage deal for auction property

Wantaflat

I'm researching property auctions as a way to acquire a potentially more affordable property.

Problem is securing a firm mortgage for an auction property; HSBC tells me they'll lend for auction property but are only prepared to give an agreement in principle initially, therefore I wouldn't have a firm agreement if I were to bid and secure a property at an auction. With 28 days to finalise an auction if successful, it's a risk I'm not prepared to take especially when it involves 10% deposit. Is there a way to secure a firm mortgage agreement ahead of bidding and possibly securing a property at an auction?


I've read in online that you need the 10% deposit for the auctioneer on the day AND the lender's deposit - I thought these were kind of the same thing, i.e. that if you get 90% LTV property and pay the 10% deposit to the auctioneer, that takes care of the 10% deposit required???

If anyone has any idea of ether of the above please shed some light and tips, it'll be massively appreciated. Thanks in advance!

GMS

Auctions are a minefield. Ask why the properties are there in the first place.

If you have no experience and/or cash then stay away.

Homes Under the Hammer is an entertaining show but don't get carried away. Moat buyers on there have cash or property to lend against.

If you need a 90% loan stay miles away from an auction.

Thrugelmir

Wantaflat wrote: »

With 28 days to finalise an auction if successful, it's a risk I'm not prepared to take especially when it involves 10% deposit.

That's why auctions tend to be the preserve of cash buyers. As you may outlay a sizable wad of money prior to the auction. Just to end up being outbid.