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I'm a new member and really like this website
I have seen a house which I’m planning to bid on an auction. Similar houses have sold for 48k-57k on the same road. I do have the cash to purchase outright. However, I don’t want to tie up all my money and need to be able to release money to buy my next property.
I was thinking about buying cash and then trying to get a BTL mortgage for 75% LTV, is this viable and how long do I have to own the property before trying to refinance?
If anyone has experience of buying at auction is it possible to do it with a traditional BTL mortgage?
Any experienced investor got advice on how best to purchase such a property?
I'm a broker specialising in the is market for 23 years. I have also been an investor with all sorts of properties for over 20.
(*Moderator note: Content removed*).
All the bestRobert
Thanks for your reply. The tenant type for the property is LHA, would you still be able to help out getting the finance for the auction purchase?
There are lenders that will allow refinancing within a 6 month window of purchase. As ever, there could be a number of other factors and criteria that a lender requires (minimum income for example).
If you'd like to give me a call to discuss your personal situation and then get an idea of potential options prior to you spending your cash then you are more than welcome. Mobile number is 07788 219 647 or contact via my signature.
You can contact me via Direct Message, or 07788 219647 or call the team on 01206 654444 for personalised quote and advice
Hi I've bought numerous at auction and have never had a mortgage company that would allow us to re mortgage within 6 months or a buyer to buy from us till we owned It for 6 months. It maybe there are those out there but probably very high interest rate. I don' know how they do it because when I've queried this with lenders they always say it's against the money laundering act to lend within 6 months. I've always been sceptical of this excuse.
You can get a mortgage to buy at suction but you'll have a time limit to complete and will have to get survey and everything done in that time scale. Usualy 4 - 6 weeks. You can get it in place before auction but will have to get everything done b4 and if you don't win the auction you'll have paid out costs for nothing.
Also you'll get 75% of what they value it at and not what you pay or think it's worth. Last 2 btl I've done they valued at 20% below what I had as sproof of market value.
rule no 1
get pre agreed for finance subject to the property being ok
rule 2 understand what properties get mortgages and those that don't.
yes its possible to get a btl through in time (75% of the time in my experience) but that is pushing the button on the same day you win the auction and often going into a serve notice period (most auction contracts are 4 weeks with extra 2 weeks option where you have to pay interest and admin fee (special conditions of sale will say if any different).
yes many banks will lend within 6mths too and not high rates - they will only generally lend on increased value above what you've paid after 6mths although 1-2 might lend on value within 6mths. Value should be more if you've bought well and refurbed.
you can get down valuations on purchase and banks will only lend a % of the down valuation price for a purchase.
feel free to drop me a line, helped clients buy circa 200 props from auctions over the yrs
regards Andrew Peers - property investor / sourcer - 07912674181
Property Redress Scheme Number 011436 NLA member 174404