UK Landlord Forum / Life

hi just trying to purchase my first additional property to let
was looking down the auction route,but they give 28 days to complete transactions
where asking to borrow additional funds on my current mortgage takes 6-12 weeks for a buy to let deposit
then the buy to let will take 6-12 weeks to go through.
 Is there a possible way to get a property via an auction using the borrowing way?
thanks

Not using a mortgage, you'd need some kind of bridging loan.

Many mortgage lenders won't lend against a property you haven't owned for a minimum of six months or will only do so with a higher than otherwise interest rate.

Despite what you might think, or have been told (or sold), that particular route into BTL hasn't been available for decades. And buying a BTL property via an auction is high risk, full stop. There's going to be a reason the seller is choosing to make less from a sale.

I get why you're drawn to auctions for your first additional property it can be an exciting and potentially lucrative route. The challenge with the short completion window is definitely something to figure out.

One approach could be to get pre-approved for a buy-to-let mortgage before you even start bidding. This way, you'll have a clear idea of what you can afford and streamline the process once you win the bid.

Another idea is to explore bridge financing, which could provide the immediate funds needed to secure the property within the auction timeframe. Once that's settled, you can then arrange for a more traditional buy-to-let mortgage.

It might also help to work closely with a mortgage broker who knows the ins and outs of auction finance—they can speed up the application process and handle the details while you focus on finding the right property.

It sounds like a bit of a balancing act, but with careful planning and the right support, you could snag a great deal.

Quote from: jpkeates on March 26, 2024, 07:08:16 AMNot using a mortgage, you'd need some kind of bridging loan.

Many mortgage lenders won't lend against a property you haven't owned for a minimum of six months or will only do so with a higher than otherwise interest rate.

Despite what you might think, or have been told (or sold), that particular route into BTL hasn't been available for decades. And buying a BTL property via an auction is high risk, full stop. There's going to be a reason the seller is choosing to make less from a sale.

We bought via auction in 2018. Good deal on 2 flats, freehold.
Financed through selling another property though.
If I had cash I would buy at auction.