Am I mad to want an unnecessary mortgage?

getmore4less

WashingTime wrote: »

All this EA rubbish makes the auction route look more interesting. Does any wonderful person know if I could take a mortgage out on a house after buying for cash at an auction?

Many lenders it will be 6 months minimum

WashingTime

Thanks - 6 months is reasonable enough.

It that likely to be the only box I have to tick (affordability, equity and all that stuff will be fine)?

kidmugsy

WashingTime wrote: »

It's likely that we would want a house for around £250 which means we could obviously buy outright.

Stamp duty => buy just below £250k, not just above.

somethingcorporate

kidmugsy wrote: »

Stamp duty => buy just below £250k, not just above.

Or exactly on.

somethingcorporate

WashingTime wrote: »

Somethingcorporate - thanks, that's really interesting.

Out of interest, what proof of deposit did they require? Do they actually want to see the zeros on a bank statement?

Ultimately, when you get into the realms of talking about house prices 200k+, everyone knows there's always room for another thousand here or there. The question is though what the buyer is prepared to pay.

All this EA rubbish makes the auction route look more interesting. Does any wonderful person know if I could take a mortgage out on a house after buying for cash at an auction?

Yes, they indeed wanted to see the 0s on a bank account print out! So be prepared if you intend to make an offer that you have access to screens (or at least screen dump print outs) of the money.

It's a bit of a sham really, anyone with half a brain can doctor a bank account printout to show more than there actually is and as long as you come up with the reddies prior to purchase it should not really matter.

Still, the EA in question is local to us and has been absolutely slammed for their poor treatment of customers so well worth steering clear of!

jamiefly

Do not let on to the estate that you are a cash buyer, you will be fleeced. He'll keep calling you up in a pseudo bidding war that is really only against yourself. It is not a legal requirement to provide an estate agent with proof of funds. If they require assurances get your solicitor to issue them, a few hundred quid spent there will mean your not opened up to be mugged.

Lastly, it's a buyers market - start your offers low and if you're not embarrassed by the initial offer you make then its not low enough. At the same time shoot highrr , look at houses in the £300-320k range and offer £250k stating that you are a first time buyer with no chain. This is realistic and people are starting to pick up bargains.

Good luck, drive a hard bargain and to be mortgage free at such a young age. We envy you.

WashingTime

thanks Jamiefly.

I think 320 would be pushing it but I like your ambition and get the point!

I see that you say that it's not a legal requirement to provide EAs with proof of funds - but I see that some EAs think it is:

"
Offer Procedure

Under the Estate Agency Act 1991 you will be required to provide us with financial information in order to verify your position before we can recommend your offer to the vendor. We will also require proof of identification in order to adhere to Money Laundering Regulations."

I've taken this example from the following house: http://www.rightmove.co.uk/property-for-sale/property-25621542.html

Who's spinning a yarn?

Cheers