Petem95

I'm toying with the idea of buying a house at some point next year, and I'm considering getting one from auction to cut out the hassle of EA's and get it a bit quicker.

THe only thing is I couldn't buy the sort of house I want outright with cash, so I'd need to either;

a) borrow money from family, which is possible but I don't really want to do this
b) take out an unsecured loan?
c) can you agree a mortgage on a home bought from auction??

Any other options, or is this just a bad idea?!

thanks

chris-boris

iTrader: (7)

With auctions you need to have all your finances well in order before you get there as you need to be able to pay the required deposit straight away and complete within a month (28 days)

If you can get a mortgage in principle with the required deposit level requested by the auction house agreed before you attend the auction you will be in a good position.

An unsecured loan is a very bad idea. It will be at a higher rate than any mortgage you can find (with *very* few exceptions) and will, as per the name, be unsecured so higher risk if your circumstances change for both you and your family.

hodgy0_2

but if you secure the property at a good discount you can just re-finance the loan with a mortgage

chris-boris

iTrader: (7)

correct - but its still a risk and does involve a big IF

its entirely down to the OP whether the risk associated with this particular option best suites his circumsatnces or if there are better options available. Personally i wouldn't want to take the chance.....

Ray T

oh and don't forget to get a "full" survey in case theres anything amiss with the property.