Buying via auction

Cheeky_Monkey

G_M wrote: »

OK - so it worked for you in that case.

What would you have done if the lender(s) had turned your application down?

I might as well say that when I last drove up the M1 I did 100 mph and did not get stopped/fined, therefore it is OK for everyone to break the speed limit because they will not get stopped/fined.

(though I agree 28 days is more usual than 7 at auctions.)

As I'm sure you will have noticed, I was replying to Marktheshark's comment that the OP will need cleared funds within 7 days etc. and it is in fact true to say that his statement is not true.

What that has to do with 100mph on the M1 I have no idea!

imho

Plus as they keep saying on Homes Under the Hammer on tv please read the legal pack of any property you are thinking that of buying.
Oh and is there not a fee you have to pay on top of the price you have bid? Auctioneers fees?

G_M

Cheeky_Monkey wrote: »

As I'm sure you will have noticed, I was replying to Marktheshark's comment that the OP will need cleared funds within 7 days etc. and it is in fact true to say that his statement is not true.

What that has to do with 100mph on the M1 I have no idea!

Apologies if I have misunderstood. I assumed that by

I have bought a house at auction and arranged my mortgage within the 28 days before completion.

you meant you bid at auction (with a 28 day Completion date), and then applied for/and were granted ("arranged") a mortgage (which may equally have been turned down leaving you up the creek - just as a 100 mph driver might or might not be caught).

However if your point was to correct the 7 days to 28 days - well I agreed with that.

Richard_Webster

Even if you get the mortgage offer - which i mplies it passed survey the solicitor acting for the mortgage lender may find something in the legal documents/replies to standard enquires/searches(especially if it is leasehold) that makes it unmortgageable. These issues are not checked by a lender before a mortgage offer is issued.

So in practice you need a solicitor to chck through all the paperwork and report back to you before you go to the auction. This obviously costs for each proeprty you think iof biodding on. Even then there may still be some unanswered questions.

khiller1988

Thanks everyone for your advice! its so difficult when your searching to know what is best. I think I am best to avoid the auction ones, purely due to the upfront cash we would risk losing!

spadoosh

khiller1988 wrote: »

Thanks everyone for your advice! its so difficult when your searching to know what is best. I think I am best to avoid the auction ones, purely due to the upfront cash we would risk losing!

Buy a house that you would be happy staying in forever (negative equity looks like a ball ache)

Decide if its a home or an investment. If its a home, get what you want, if its an investment (obvious stepping stone) get what most people want.

Dont spend more than 1/3 of your income on mortgage and utilities and insurance.

The shorter the mortgage the less you pay (in general) try and keep the years as low as possible without going past the 1/3 rule.

Try not to think your situation is too unique or special. Thousands of houses are sold every week across the uk and there are professionals who can cover you, so use them. Its a bit like when your teachers used to tell you your GCSE's are the biggest decision in your life, not really true, chances are you'll live through it.

Enjoy it, from experience its easier being the person that can shrug the whole process off than the person that freaks out when you get a surveyors report.

HouseBuyer77

I think I am best to avoid the auction ones, purely due to the upfront cash we would risk losing!

You're unlikely to get a bargin even if you did look into auctions (I assume that's why you were in the first place). Those making money from auction properties are experienced property developers. They can either do whatever work is required themselves, can obtain favourable rates from others or are setup as a company and employ people to do it.

As an FTB with (presumably) no connections in the building trade or experience in property development you're unlikey to save money compared to say buying a dooer upper from via a normal EA managed sale (and with far more possibilities of getting into major financial issues with an auction property).

eddddy

khiller1988 wrote: »

Thanks everyone for your advice! its so difficult when your searching to know what is best. I think I am best to avoid the auction ones, purely due to the upfront cash we would risk losing!

Sounds sensible. People sometimes think that auctions are full of wonderful super-cheap properties. They're not.

Properties sell for what they're worth at auction.

If properties sold at auction for less than they were worth, no property owner would sell their property at an auction.


And the people who lose £10k, £20k or £100k through buying property at auction tend to avoid appearing on 'Homes Under the Hammer'. Because they don't want to be humiliated and laughed at on national tv.

KayTM

I would also add that having a mortgage offer in principle is no guarantee of being offered a mortgage, even if the lender's valuer OKs the property. We had a good offer in principle, then - between exchange and completion - the underwriters refused the loan on the basis of "affordability".

We submitted extra paperwork to them to prove it was "affordable" and they reversed their decision and OKed the loan. It was stressful enough to play the waiting game. I can hardly imagine how much worse it would have been if we'd already entered into a legal commitment to buy - and come up with the money within such a limited time.

As others have said, "Homes Under The Hammer" paints a rosy picture by making it all look so easy.