quote:

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Originally posted by LiVe LeE
I know that a lot of BTL mortgages have been withdrawn for first time buyers and lots of lenders have a prerequisite that you must own another property or have a domestic mortgage before they'll lend on a BTL mortgage. It wouldn't surprise me if it was similar for auction properties now

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I know that a lot of BTL mortgages have been withdrawn for first time buyers and lots of lenders have a prerequisite that you must own another property or have a domestic mortgage before they'll lend on a BTL mortgage. It wouldn't surprise me if it was similar for auction properties now

quote:

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Originally posted by deano87
From a mortgage perspective John, not cash.

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Deano was referring to him thinking that it wasn't allowed, he says so above, nothing to do with difficulty of raising a mortgage.

Is it any more difficult to do that as FTB? I would think you need more equity whether its your first home or nth investment?

I think what Deano is referring to is the difficulty to raise a mortgage against an auction property for a first time buyer-not that a first time buyer who can secure the funds elsewhere can't buy one

Why should a FTB not buy anywhere they please?

You need some money ready to cover the up front expenses so don't bid on the back of making a phone call about a 100% mortgage.

But no other reason. Affording the house being the main one.

The heating will be on optimal settings and only when his pie charts and spreadsheets allow for it.

Probably worried deano will be as frugal with the central heating as he is with his cars.

Cold showers and frozen interiors galore.

Your Mrs doesn't want to move in with you....

From a mortgage perspective John, not cash.

EDIT: Well, so my Mrs says. Quick Google search shows you can :facepalm:

[Edited on 17-09-2013 by deano87]

Why can you not buy as a first time buyer? How would they ever know that if you didn't tell them?

What if I was a first time buyer and had cash? There's no chance they'd turn me down. I think that must be made up Deano.

As said, I read into it.

1) You can't buy at auction as a first time buyer (shame because my dad is a builder)
2) You have to pay fees and deposits on the day, in the auction house. As soon as the hammer goes down, you're legally obliged to buy.

Guide prices are always set low so that (a) it draws interest and (b) makes the auction place look good.

The place I had my eye on sold for almost double the guide price anyway.

I know auction houses set the guide prices low to build interest but that's ridiculous.

The fee will be the 'seller's fee' payable to the auction house. They're covering the fee by passing the 2% charge on to the buyer

You can't bid subject to survey. Deposit and fees normally needs paying on the day and completion within 30days is the normal.

You can have a survey done up front but if you don't win it, you've spent out on a survey.

Pretty sure you can't bid subject to survey.

Also bear in mind that many will want to complete in 30 days so you need to make sure you get your money sorted up front and sure you can get it.

I've often heard of the sellers fees being paid by the buyer which may well be what the 2% is.

Couple of questions:

Do you need to get a survey up front, or are you able to bid "subject to survey"? I'm assuming you need it up front, but it's quite a lot of money to outlay when the property could be withdrawn or you could easily lose it at the auction.

I read the legal pack for a property near me. It says "In addition to the purchase price the buyer will pay the seller on completion an additional two percent of the said purchase price". Is this common practice? There's no explanation as to what the fee might be for, so can sellers just dictate pretty much any terms they like in the legal pack?!



[Edited on 16-09-2013 by James]