It is most definitely possible to arrange a long-term mortgage within an auction timescale, whether you wish to purchase a property to live in yourself or one to rent out, however there are some key points to consider, and it is always advisable to have a back-up plan available.
For a property you wish to live in it needs to be habitable, and you need to have provided us with all your information and documentation prior to the auction so we can ensure that a residential mortgage will be available. As soon as the hammer falls, we will start the application process, providing all the required documentation to the lender so they can immediately get to work on it for us. Once the valuation comes back (or a desktop / automated valuation provided), we can move quickly to offer.
For a Buy to Let, the process is similar but the requirements for information and documents will be a little different. The property, as well as being liveable, also needs to be in a lettable condition for a Buy to Let mortgage to be available. Lenders look for the following:
- Working kitchen
- Working bathroom
- Permanent heating system (gas central heating or storage heaters)
- An EPC (Energy Performance Certificate) or “E” or better
- Carpets or floor coverings
- Generally in good state of repair
- No damp nor structural problems such as subsidence that may require additional reports
If minor works are required, then valuers will take a view and allow the property to be considered “suitable security for mortgage purposes.”
As much as we will always do our best to obtain the most competitively priced finance available, we will always have a bridging finance back-up should the Buy to Let or residential mortgage not be available. As covered in other blogs, get the legal pack reviewed by a solicitor and make sure you have enough of a deposit to cover any additional interest and fees that this type of finance requires.
The Team at Aspire Property Finance have over 15 years of experience in specialist Auction Finance, please get in touch to see how we can work with you to support your auction property purchases:
01225 800849
Enquiries@aspirepropertyfinance.co.uk