Best Mortgage provider for mortgage properties

JM1981

Hi,

I am considering bidding on a property at auction, however I will need a mortgage for part of the property.

I am aware that if you are unable to complete on a mortgage within 28 days after the auction then you can lose your deposit.

Does anyone have any experience/anecdotes of buying from auction with a mortgage and what providers are good at providing mortgages fast?

JM.

Annisele

A mortgage for "part" of the property? That doesn't sound a good idea...

Even if you mean you'll need a mortgage to cover part of the purchase cost for the whole property (i.e. the property isn't chopped up into bits), that still doesn't sound a good idea.

Usually properties are only sold at auction if there's something wrong with them. Often the thing that's wrong is that they're not mortgageable. If you buy one of those, it won't matter how quick the provider is.

You can substantially reduce the risk of ending up with an unmortgageable property by paying somebody to get the legals/survey done before you bid. However, if you don't win the property you lose all of that money.

ACG

You have 2 choices, first is to get a bridging loan - theyre more expensive than normal mortgages and theyre only a short term solution (6-12 months).

Alternatively you can put an application in, pay for the valuation to be done and then hope you get it. The mortgage should then complete within 28 days but there are no guarantees.

JM1981

Thanks for the responses.

@Annisele - Yes I mean part of the payment for the property. Is it really true that they only go to auction if they are unsellable? In my case the council are selling it off because the old woman living there passed away and they are selling off stock. Therefore it seems logical that they would auction it for fast sale and reduced administration.

@ACG:

Alternatively you can put an application in, pay for the valuation to be done and then hope you get it. The mortgage should then complete within 28 days but there are no guarantees.

Yes it is my intention to do exactly this, but i'm wondering if there are any mortgage companies out there who have a reputation for quick turnaround in such scenarios and any who I should definitely avoid.

Cheers,

Jm

Thrugelmir

JM1981 wrote: »

Yes it is my intention to do exactly this, but i'm wondering if there are any mortgage companies out there who have a reputation for quick turnaround in such scenarios and any who I should definitely avoid.

The circumstances surrounding the application more often or not determine the speed of the transaction. Not the mortgage company themselves. You would would receive a more personalised service from a small building society rather that a large bank call centre operation. Where activity is dealt with in chronological order.

JM1981

Thanks Thrugelmir.

I am considering going with First Direct as I bank with them and they are prepared to do the valuation for free prior to the auction as part of thier no fees mortgage deal. Does anyone have any recent experience with first direct? Are they generally fast/ slow?

JM

opinions4u

First Direct and HSBC get regular processing backlogs.

Auctions and mortgages rarely work well. It's a place for the cash buyer.

Richard_Webster

You will have the legal pack checked by a solicitor before the auction won't you?

Just because the lender makes an offer, doesn't guarantee it will provide the money if there are legal problems. Lenders don't check these points but rely on the solicitors to do so.