mortgage advice

Hi guys,
just a quick one here - my lady and I are looking to move to a bigger house (renting initially) - but we've seen a house locally that was advertised as 96k (3 bedrooms, detached etc) and now on the website it states - "For Sale by Auction - unless sold prior - Guide Price offers in excess of £68,000" which to me seems a bargain!! when you consider that the kitchen and living room has just been done out (from what I can see on the website photo).

we don't have any real savings (few hundred) - any idea what the score with the auction is - why would a house be selling at a higher price then all of a sudden be priced at that..? - maybe the past owners couldn;t afford the payments? but then who would have paid for the kitchen etc?

what kind of mortgage should i gi for etc?

cheers

 

You're going to have to be earning quite a bit between to you get a mortgage of £100k which is what you may need. If you get for £70k I guess you will be ok if you have joint incomes.

Most lenders will give you 100% if you're not self employed but they charge more interest.

 

Guide price is to get you there. Once there, like on e-bay people start to bid impulsively. There is no chance whatsoever that it will not go for a great deal more than the guide price unless it has major problems.if it does have major problems you won't know cos you wont have had it surveyed will you? Also you'll be up against buy to let people and builders who will know much better than you what the property is worth. You also can't win the auction then arrange a mortgage, you've got to have the dosh ready. I can't see any lender giving you a mortgage on a property sight unseen, unsurveyed, etc.
Bottom line - auctions are for people with loads of ready dosh.

 

yeah - I was hoping (maybe) that I could get it sorted before it goes to auction - if i was to ring up and say offer 70k then they may accept, which to me is what this quote is stating - "For Sale by Auction - unless sold prior - Guide Price offers in excess of £68,000" ??

 

They'll want 96k or very near to take it off auction. at auction it will go in excess of 90k very likely. As Uncle Bob says the guide price is just to get you there

 

ok cheers - I'll speak to my lady tonight...
tho, 96k is a good price anyway...

 

96k is an amazing price for a 3 bed detached house! I'm gonna move to where you live, especially having seen the pics you take of your surrounding countryside, which looks lovely. Are there many such houses for that kind of money up there? It'd get me out of visiting distance from my in-laws as well, ha ha :lol:

I can't afford to move up to any three bed round here, bloomin prices never seem to stop creeping up .

 

Yeah you can't even buy a 1 bed flat for £100k where I live. I live 'up north' too.

They reckon it will only get worse as well.

 

If it's been on the market for 96k and hasn't sold and it seems to be a fair price then there's probably a good reason for it not selling.

 

thats what I thought - not sure how long it's been on the market for, it's downside (as far as I can see) it's that its on a busy road and next to a pub...

but why do houses generally get sold at auctions..? - usually because they've been repossesed..? if thats the case, then who would have paid for the kitchen etc to be upgraded..?

 

AT you could buy a three bedroom house within 20 minutes of the centre of Manchester in a decent area if you look in the right places. Try Newhey, or Shaw