Mortgage for auction property with land

Penri1980

Previously posted on the Buying and Selling forum but advised to post here (sorry if you’re reading again!)

Can anyone recommend any useful online resources or specific mortgage advisors who could help me investigate whether I could get a mortgage for an auction property with 15 acres of land? It needs some work but looks structurally sound and is habitable with a working kitchen and bathroom. The guide price is quite a bit lower than the AIP that I recently received, so I’m starting to dream, but don’t know if it’s realistic.

The mortgage advisor I originally talked to said that they didn’t advise on mortgages for auction properties and that more than 4 acres causes complications when trying to get a mortgage with most lenders.

Any help would be appreciated, the auction is in about 6 weeks. Thanks in advance.

K_S

@penri1980 The acreage will limit the pool of lenders but isn't a huge issue on its own. However the fact that it's combined with being an auction property (so usually a 28 day deadline to completion for traditional auctions) means that it's hard (not impossible) to use a standard mortgage and do everything required within 28 days.

From a mortgage perspective, in my experience, most buyers who try to buy auction properties like the one mentioned in your post will have a large deposit, use a bridging loan to buy the property and once it's in their ownership, work on it if needed and then re-mortgage to the kind of mortgage they need.

Good luck, I hope you find a solution that works!

Penri1980 said:

Previously posted on the Buying and Selling forum but advised to post here (sorry if you’re reading again!)

Can anyone recommend any useful online resources or specific mortgage advisors who could help me investigate whether I could get a mortgage for an auction property with 15 acres of land? It needs some work but looks structurally sound and is habitable with a working kitchen and bathroom. The guide price is quite a bit lower than the AIP that I recently received, so I’m starting to dream, but don’t know if it’s realistic.

The mortgage advisor I originally talked to said that they didn’t advise on mortgages for auction properties and that more than 4 acres causes complications when trying to get a mortgage with most lenders.

Any help would be appreciated, the auction is in about 6 weeks. Thanks in advance.