decisions decisions!!

melj16

I've been searching for a first time house purchase for several months now, whilst also researching the mortgage industry.

I have came across a house down the street from my mother which is due to go up for auction later this month (with an auctioneer in London - even though the property is in North East)

obviously with an auction a 10% deposit is required on drop of the hammer. However I am dubious firstly incase I cannot secure a mortgage on the property in the 20 working day timescale set, and secondly whether I will be able to secure a mortgage at all.


My situation is:

Salary £21k
1 dependent
Car finance of £275
I currently pay rent of £600 pcm
I have no other debts (pay credit card in full every month)

I have one late payment marker for my credit card from May 12. And in 2011 I have 1,2,3,4 showing for Orange phone bill, which was settled in the august.

I will be putting 30% deposit down.

I have been liaising with London and Country brokers who have said it would be in my best interests to submit an application now ready for the auction. They have mentioned Halifax.

Can anyone advise whether Halifax are very strict or whether I should be ok with the above. The guide price on the property is £45k, I would be willing to pay upto £60k (this is about average for the auction properties in the area)

Any advice would be much appreciated

Thanks

GMS

First thing to ask is why is the property in the auction?

Does it have any issues with it such as structural movement? Is it mortgageable?

Have you checked the legal pack?

I would suggest you get a survey done on it prior to bidding.

melj16

I am waiting for the legal pack to be uploaded onto the auctioneers website. I am going to view the property tomorrow.

Its current owner is a housing association, the reason for auction is that apparently this is the way they prove that they have achieved the best possible selling price :cool:

The broker suggested having a valuation done prior to bidding.....is this the same thing or is a survey more in depth?

Thanks

GMS

A valuation is for the lender to ensure it is worth the purchase price. The surveyor would look for obvious defects.

A surveyor employed by you will carry out a much more in depth inspection and highlight issues.

If you are unsure of anything in the legal pack then check with somebody who knows.

melj16

Does anyone have advice on the chances of securing a mortgage with Halifax with my situation as described above.

Thanks again

Thrugelmir

You may be better off applying through a local building society. As they would process the application much faster.

hcb42

why dont you ring the halifax and explain you are house hunting, they can at least kick the process off in terms of assessing what they will lend you in principle. they will not make a formal offer of mortgage on any property without a valuation however, hence the earlier advice..