Wanting to raise money to buy a house at auction. Any advice much appreciated.

jimwilson_2

Hi

I currently own a house worth approx 85,000 on which I owe 37,000. To step up the property ladder, I am, in the near distant future wanting to buy a house at auction and therefore would need a loan to cover the cost of the house at auction. I would be looking at spending the same amount of money (85,000) on an auction house.

Would I be better keeping my current house, renting it out and remortgaging, or selling the house, getting a loan and putting my house sale profits towards the auction bought house? The other possibility would be to get a loan secured against the house I currently own.

I realise this is rather vague, as I have only just started thinking about this. Any pointers in the right direction would be much appreciated.

Thanks very much in advance.

Jim

jonesMUFCforever

I think you will only NEED 10% on the day of the auction with the balance within 28 days or so.
The month gives you time to conduct your searches etc and get in place the finance.
It is difficult to say whether you should sell or rent out your present home - that would have to be your decision but could you afford to pay both for say 6 months in case you could not find a tenant and/or substantial work needs doing to make it habitable?

I would also urge caution at any auction - once the hammer is down and you win you are legally bound to complete the transaction so take care.