Buying at Auction and Bridging the gap

Joanne999

Hi New to this site

I've recently accepted an offer for the full asking price for my property. I'm planning to downsize and seen the house I really want, problem is, it is going to auction on Wednesday. Although my sale is going ahead, I'm worried that my equity will not be released in time to complete the auction purchase in 28 days.

I have the deposit in place and have researched the Bridging route with 1 broker, fees seem very high and I'm not sure I fully understand all of them or how it would work.. Anyone got any advice on bridging finance and who they may recommend?

Thanks Jo

dimbo61

If your sale falls through ?
Deep deep SxxT
Wait until you have sold your home and have the cash sitting in the bank.
Maybe rent for 6 months

Mutton_Geoff

It may not sell at auction, many don't. You could then enter into a private arrangement with the vendor subject to your own sale. You can contact them via the auction house or via the online land registry records for a few quid.

G_M

You cannot count on receiving the cash from your sale till you've Exchaged Contracts.

Unless this happens before Wednesday, don't bid!

Brdgng loan? How good's your credit? How many 0% credit cards can you get, with what limits?

spendinglikemad

Could you remortgage your current property to release deposit funds and secure new mortgage? We did this when we bought at modern auction to buy our dream house (current house on interest only BTL) and all was done within 2 weeks (exchange did take slightly longer than 28 days but only because of the vendors solicitors)

SLM

Joanne999

Thanks for your reply.

I put my house up on a Friday and had the asking price by 2 buyers on the Saturday, so I'm confident it will sell. But yes it is risky, many sleepless nights. !

Joanne999

Could you remortgage your current property to release deposit funds and secure new mortgage? We did this when we bought at modern auction to buy our dream house (current house on interest only BTL) and all was done within 2 weeks (exchange did take slightly longer than 28 days but only because of the vendors solicitors)

SLM

I'm not sure, I've got a financial advisor looking at the options, will talk to him about this . Thanks:)

Joanne999

Pretty good credit rating, but not sure I could fund the Auction amount with credit cards? Is that what you mean?

spendinglikemad

If you can do it that way it might help. Our intention was to sell our property but at the time our dream house came up we hadn't agreed a sale. We did have sufficient savings for the extra stamp duty and moving costs and we raised a mortgage on our new property by remortgaging our old property on BTL basis (we thought we would let out but ended up agreeing a sale after)

We got a broker involved and he found the right mortgages for us

SLM

DCFC79

Joanne999 wrote: »

Pretty good credit rating, but not sure I could fund the Auction amount with credit cards? Is that what you mean?

A pretty good credit rating won't be any use since no one else will see it.

martindow

Another issue is that the guide price can often be low to draw in interest. It might go for a lot more.