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Auction bought property...mortgage hell!
jones_the_cat
Posts: 5 Forumite
We bought a £160 thousand pounds property for £50 thousand, at an auction. Borrowed the cash from family members, meaning to pay them back when we had a mortgage. However the banks we have approached are offering only the purchase price and not a valuation price. They also want us to pay a 20% deposit on the offered sum. We didn't want to put more available cash into that so they then offered us a loan to cover the 20% deposit!!!!! We want to borrow £70 to £75 thousand.
CAN ANYONE ADVISE PLEASE!!!!!!!
CAN ANYONE ADVISE PLEASE!!!!!!!
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Comments
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jones_the_cat wrote: »We bought a £160 thousand pounds property for £50 thousand, at an auction. Borrowed the cash from family members, meaning to pay them back when we had a mortgage. However the banks we have approached are offering only the purchase price and not a valuation price. They also want us to pay a 20% deposit on the offered sum. We didn't want to put more available cash into that so they then offered us a loan to cover the 20% deposit!!!!! We want to borrow £70 to £75 thousand.
CAN ANYONE ADVISE PLEASE!!!!!!!0 -
Ive never had to do this, but im pretty sure it can be done... most lenders will refuse to do it (in their eyes, how can a property treble in value overnight...even though we all know thats not the case) but there are one or 2 small lenders who will look at it, dont expect market leading rates immediately though.
You really need to get a broker involved on this to get it done.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Sell the house and give people thier money back.
You can't force a bank to give you money at the end of the day.People don't know what they want until you show them.0 -
It would have to be a cash sale... you cant usually get mortgages on properties which have been bought in the last 6 months. So thats probably not going to work either.Kayalana99 wrote: »Sell the house and give people thier money back.
You can't force a bank to give you money at the end of the day.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Kayalana99 wrote: »Sell the house and give people thier money back.
You can't force a bank to give you money at the end of the day.
That's what people come here for. Good, constructive advice. Pity this sort of thing is what they get instead.0 -
It is constructive advice the guy took his family's money without even bothering to find out what kind of mortage he could obtain or IF he could even have one.
I feel sorry for his family not him tbh!!People don't know what they want until you show them.0 -
Thanks for responding. I am a she (surprise surprise) and the house went down with a previous liquidation....hence the auction of assets. It was purchased in August, 2012.0
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Who have you approached?
Direct to lenders?
Any independent or whole market brokers?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
You didn't buy a £160,000 for £50,000. You bought a £50,000 house for £50,000.
If the former we're true I would advise you sell the house and enjoy your instant £110,000 profit.0 -
See an independent mortgage broker.Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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