Mortgage to buy at auction

Rew

Can you get mortgage approval to buy at auction?

L1011

Yes - but it isn't as easy and you can have trouble getting a cheque for the right amount issued quickly. Remember there may be a buyers premium to take in to account too

Henry Ford III

I doubt it.

You could get an aproval in principle up to a certain amount but the lender and solicitors will need to be able inspect and perfect the title and their charge over it. That'll vary property to property.

Rew

Henry Ford III wrote: »

I doubt it.

You could get an aproval in principle up to a certain amount but the lender and solicitors will need to be able inspect and perfect the title and their charge over it. That'll vary property to property.

The legal pack is available ahead of the auction which outlines all that

Desmonddoyle

You really only need your deposit in cash on the day - actual closing and payment of the balance will most likely be months away, many months away if you are unlucky enough to be dealing with a vendor that is a financial institution.

However - you really need to do you due diligence (see the house / read the legal pack / get legal advice if necessary) as you need to be aware that this deposit is non-refundable, and you are legally obliged to go through with the sale.

To answer you question - there is no reason why you can't use a mortgage provided you can fund the upfront deposit with cash. Some people think buying at auction is a much quicker process, but in my experience, it's definitely not the case.

If you go in with your eyes open and have done all your homework, you should be fine, good luck.

Henry Ford III

Rew wrote: »

The legal pack is available ahead of the auction which outlines all that

I know. That's not sufficent for a lender though.

handlemaster

So tell us OP which allsop property are you going for ðŸ˜

Rew

handlemaster wrote: »

So tell us OP which allsop property are you going for ðŸ˜

Well nothing firm, recently had a house lined up but EA was telling half truths and turns out to be in NE and bank refused what we agreed with vendor/EA. Its left us in the lurch so looking at all options now. Had considered the Allsop auction in June but there was nothing of interest in it. The mortgage to buy at auction seems to be a tricky question to answer, bank have yet to give a straight answer.

Archaeoliz

We were considering buying at auction too and are just starting some research. Would any of you know if the banks will lend on properties at first fix stage? We should have enough to to pay a deposit and hold enough back to complete works.

GalwayBmw

It'll be all down to the quality of the title / price adequateness. If you are serious about buying try contacting auctioneer and asking him for some pre-contract documentation.

Another thing I heard about auctions - the deposit you pay towards the purchase is not refundable.

L1011

GalwayBmw wrote: »

Another thing I heard about auctions - the deposit you pay towards the purchase is not refundable.

Its not refundable because you've formed a contract to buy. If you walk away there's a lot more than the deposit at stake.