Auction mortgages available through Trinity Financial

by Aaron Strutt

Jan 30 2014

Buying a property at auction doesn't have to be a complicated affair even if you need a mortgage, providing you have the right advice. Securing an agreement in principle and a property valuation are the recommend first steps.

Fast mortgage offers

If you are buying a home at auction you will need to approach a lender with good service levels to ensure the mortgage offer in place for completion. This is important as you need to be ready to pay for the property within 28 days.

Aaron Strutt, product manager at Trinity Financial, says: “If you are buying a property at auction and you need a mortgage it is important that all of your finances are in order. You need to have all of the documents the lender requires.

“Some of the more efficient lenders will produce a mortgage offer within a few weeks, although some of the lenders are taking three or four days to assess paperwork. It is certainly best practice to send all of the paperwork the lender requires in one go.”

Deposits

You could potentially buy a new home at auction even if you have a 5% deposit although it will be easier if you have more to put down. If you are looking for a buy-to-let mortgage you will realistically need to have a 25% deposit.

Once you buy the property and the hammer goes down you will need to make a 10% payment on the day.

Get the property valued

Ensuring a survey is completed before the day of bidding will limit the chances of the bank or building society refusing to lend because of the property, particularly if it needs work.  It can be tricky to arrange for a valuation to be booked in as the auction houses often provide buyers with a short viewing time.

Paying for a private surveyor maybe a good idea to evaluate the property and they will also give you a more accurate idea of the value.

If you are buying at auction and would like help to secure a mortgage, call us on 020 7016 0790.

January 30, 2014