Mortgage on Repossed Property

MysteryM

Has anyone tried to go through the process of buying a repossed property before?

The question i have is in regard to gazumping, as after we make an offer the property will remain on the market until we complete and we run the risk of being gazumped. If someone does come in with a higher offer, we want to up the amount of mortgage we have.

My question is will a mortgage company happily allow me to increase the amount i want from them whilst at the solicitor stage?

To put this in context, we are currently at about 30% loan to value (i.e. we have the 70% of the cash value of the property), but since the property is going to be sold at a discount i don't need the total mortgage that is currently being offered, BUT if a counter offer comes in, i'd need the mortgage company to increase how much i need.

i.e. My mortgage offer is 150k (i have an offer already based on salary etc), but i may need only 70k of it initially (due to the repossed property discount) but it may move toward the full 150k if other counter offers come in before completing and signing contracts.

monty-doggy

I am currently renting, and am about to buy my first property, the house I am renting has been repossessed and is up for sale. I made several offers on the property however each time someone else came forward with a higher offer and now I feel it's sold for much more than it is worth. I had a survey done and it was valued for re sale between 110k and 120k. My final offer was 125 at stamp duty and since its had an offer of 138!!!

My mortgage broker assured me that the mortgage can be changed however rates etc change drastically if the LTV changes above a threshold, for example if it was 70% and rate offered was 2.35, the rate could jump to over 3% off the loan became 72%.

If you have some cash reserve it may be easier for you to stick to a set borrowing amount and adjust your deposit amount, as long as it fits your LTV for your mortgage application if that makes sense.

We ended up walking away, it can be very upsetting and costly when they market right up until day of completion.