Help - problems getting a mortgage!

MortgageMamma

what condition is the property in? this is REALLY important. does it have a bathroom that works and a kitchen that works? does it have windows and lockable doors? If you could give me some further information that would be helpful.

Have you seen a mortgage adviser yet? if not, see one. you are on very dodgy ground unless you get your mortgage sorted like yesterday.

Do you know WHY you can't get a mortgage? have you applied for residential mortgages on this property or have you tried buy to let mortgages or home development mortgages?

I can't stress strongly enough you need to take professional advice or your £15 deposit is going to line the pockets of your vendors and you won't get that house

wellandpower

clm2802 wrote: »

We paid a deposit on the auction day, but as we have had problems getting the mortgage the vendors have kindly given us extra time. We need to complete in 2-3 weeks( I know it's tight) or will forfeit the deposit! We, ignorantly did not get an offer before the auction as really did not expect to get the property.

2-3 weeks is a mega fast mortgage.

I think you have a high chance of loosing your deposit, hopefully someone can save your money and it will be nice to know the result.

SquatNow

No-one with a brain is going to lend you money in your situation in the current market. So try Northern Wreck then.

I beleive the normal procedure at this point is just to accept that you made a mistake that cost you £15,000 and hope they don't sue for more... which they would be fully entitled to.

Because the property has been off the market for a short time, when it comes to sell at auction it will sell for a lot less... prices are dropping fast.

While I'm no lawer, I suspect in court they'de get the difference between the bid below your winning bid and the final sale price.

Now that the number of high LTV mortgages on the market is virtually zero, house prices have effectively dropped by 50%. It will take a while for sellers to realise this though. The oversimplified maths works like this: £10k deposit @95%ltv means you can buy a £200k house. At 90%ltv it means you can buy a 100k house. Thus the price buyers are able to pay for houses just halved instantly. Thus the value of the house halved.

The result: Banks will want 20% cash (UNBORROWED!!!) deposit from someone in your situation.

So basically if you're lucky you just lost £15,000. If you are UNLUCKY you just lost £75,000.

UK007BullDog

Hmmm OP has not come back.

SquatNow, you are being too negative. The OP needs to see a whole of market Adviser as I am sure something can be done. Maybe not in those time scales but something can be done I am sure. Hopefully the OP is getting professional advice from someone.

homer_j_3

The fact of the matter is that the OP has not done their research properly into the process of buying at auction. They do not need someone telling them this as I am sure they already know.

What they are looking for is solutions. The only solution, I could think of which may work would be to do either what MM has said or look at bridging but this may be a last resort option and needs professional advice.

As with 99% of posts, we only get to see about 5% of the picture and it reminds me of a quiz show that I once watched where they showed you a crease in the skin and you had to guess which part of the body it belonged too. For the life of me, I cannot remember which show it was on but the fact is that there are usually several options open until you get more facts.