Mortgages

Xtremeforce · 18 Nov 2008 at 20:27

Hi guys just a quick question on Mortgages:

Can you get a Mortgage without a survey on a property?

The reason i ask im a First time buyer with a health deposit of around 15% of the value of this property im interested in the only issue is this property is at auction, so with the time frame being tight il be honest i don't know too much about buying at auction but this is a bargain as i know the area quite well, ive got a appmt with Mortgage adviser on Thursday but with the auction being at the start of Dec im worried i won't be able to get a surveyor in there in time?

Let me know your thoughts?

Cheers

Jez · 18 Nov 2008 at 20:35

Not with a standard product, you will need to get the house surveyed prior to the auction.

If you cannot gain access you have two options, although tbh i cant see 15% being enough for either;

1) Renovation mortgage (sometimes advertised as self build mortgage), have a look through buildstore.co.uk for some products.

2) Property development loan, i had one agreed through HSBC while i was looking at auctions, this is literally a loan, AER was at nearly double figures. The idea was that you take it out, develop the site with it, and then mortgage the site later or sell it to pay off the loan. Most banks offer this.

jamief · 18 Nov 2008 at 21:16

No, you won't get a mortgage, and nor should you. Getting access before the auction shouldn't be an issue though, surely?

DB_SamX · 18 Nov 2008 at 21:19

I doubt 15% can be called a healthy deposit, I'd say it was about a minimum these days. But I'm just interpreting this on what I read and hear.

Energize · 18 Nov 2008 at 21:25

DB_SamX said:
I doubt 15% can be called a healthy deposit, I'd say it was about a minimum these days. But I'm just interpreting this on what I read and hear.

Indeed. An 85% mortage is the most your likely to get these days, 30% could be called healthy.

Xtremeforce · 18 Nov 2008 at 22:03

Jez said:
Not with a standard product, you will need to get the house surveyed prior to the auction.

If you cannot gain access you have two options, although tbh i cant see 15% being enough for either;

1) Renovation mortgage (sometimes advertised as self build mortgage), have a look through buildstore.co.uk for some products.

2) Property development loan, i had one agreed through HSBC while i was looking at auctions, this is literally a loan, AER was at nearly double figures. The idea was that you take it out, develop the site with it, and then mortgage the site later or sell it to pay off the loan. Most banks offer this.

Thanks for your help mate, i think 15% is quite healthy for a 21 year old but maybe i was wrong lol mind you we are UP NORTH haha,

Thanks for your views guys, i wasn't intending getting a mortgage around one but just thought there mite be a way but hey, thanks

Kitchster_uk · 18 Nov 2008 at 23:00

Energize said:
Indeed. An 85% mortage is the most your likely to get these days, 30% could be called healthy.

40% is a healthy deposit now - I work in the industry.

Jez · 18 Nov 2008 at 23:06

Xtremeforce said:
Thanks for your help mate, i think 15% is quite healthy for a 21 year old but maybe i was wrong lol mind you we are UP NORTH haha,

Thanks for your views guys, i wasn't intending getting a mortgage around one but just thought there mite be a way but hey, thanks

There is no reason that you cant go the auction route, you just have the added risk of the survey fees. TBH though 15% wont be enough in this market for anything other than normal products, i was putting in ~50% in my examples above

Kitchster_uk · 18 Nov 2008 at 23:09

Jez said:
There is no reason that you cant go the auction route, you just have the added risk of the survey fees. TBH though 15% wont be enough in this market for anything other than normal products, i was putting in ~50% in my examples above

From what I've been seeing, we are still doing 90% LTV but anything above 75% is attracting big rates (4 over base) and to get 1 over you're lloking around the 60% range.

Jez · 18 Nov 2008 at 23:12

Kitchster_uk said:
From what I've been seeing, we are still doing 90% LTV but anything above 75% is attracting big rates (4 over base) and to get 1 over you're lloking around the 60% range.

My experience too, i am buying a second home at the moment with a high LTV (10% cash) which will be at ~6.5%.

Development loans may still be an option to the OP, he will need to do some enquiries with each bank.

leaskovski · 18 Nov 2008 at 23:37

you wont get a mortgage without a survey being taken out on the property, however, there is nothing to stop you from taking our your own survey with an indie that is registered with your privider and getting him to do a full (proper) survey instead of the half arsed "will we get our money back" ones that the mortgage company usually does.