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Costs when buying a house
Comments
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I've had a mortgage in principle earlier this year for different values ect, but that was provided for free from HSBC. If I understand you, you're saying to get the valuation survey ect done so I know 100% I have the finances secured?
If that's the case I can understand where you are coming from, but isn't that a little bit too far. If you do this for every property you could end up spending 15k before you buy a property and might aswell overbid on the first one.
On auction properties, I don't think it is going too far.
Usually (not always) the reason properties are sold at auction is because there's something wrong with them. Sometimes the thing that's wrong means they're not suitable security for a mortgage - so they're only suitable for cash buyers.
You do not want to discover you can't get a mortgage after you've committed to buying! In that case, you'll lose the 10% fee as a minimum.0 -
One fee that may or may not catch people out is the first mortgage payment. Not a fee as such, but our first mortgage payment was almost double our regular payment.
I believe this is to cover the first months interest, or something along those lines.
It may not be an issue for people, we had anticipated it so had some money spare.0 -
On auction properties, I don't think it is going too far.
Usually (not always) the reason properties are sold at auction is because there's something wrong with them. Sometimes the thing that's wrong means they're not suitable security for a mortgage - so they're only suitable for cash buyers.
You do not want to discover you can't get a mortgage after you've committed to buying! In that case, you'll lose the 10% fee as a minimum.
I do have options to buy in cash, with the back up of personal loans. Just want to go with a mortgage if possible.0 -
That's not so bad then. Buy the first one with cash...then mortgage it for as much as possible and buy the next one in another month or two with that money and a bit of savings...and continue every few months until you run out of money. Buying 3 all in one go may not be a good idea. If one property in unmortgageable it'll all fall down and you will lose the 10% you had to pay at the auction and possibly be liable for a lot more.Thanks for the concern, I've written it in the previous reply. I'm looking at a 50%LTV to make things viable.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
That's not so bad then. Buy the first one with cash...then mortgage it for as much as possible and buy the next one in another month or two with that money and a bit of savings...and continue every few months until you run out of money. Buying 3 all in one go may not be a good idea. If one property in unmortgageable it'll all fall down and you will lose the 10% you had to pay at the auction and possibly be liable for a lot more.
I think they are being sold as a single lot, so no option to split them one at a time.0 -
That's not so bad then. Buy the first one with cash...then mortgage it for as much as possible and buy the next one in another month or two with that money and a bit of savings...and continue every few months until you run out of money. Buying 3 all in one go may not be a good idea. If one property in unmortgageable it'll all fall down and you will lose the 10% you had to pay at the auction and possibly be liable for a lot more.I think they are being sold as a single lot, so no option to split them one at a time.
Yorkie got that right 0
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