I went to view two properties recently. It was a worthwhile experience even though both were overpriced and unsuitable layouts. The agent had a few pearls of wisdom which I hadn't expected at all. Another buyer mentioned getting a mortgage before going to auction and she told him why it won't work - if you're using that property as security, a bank will only loan after doing their own valuation, which generally takes weeks IF they will even agree to process one on an auction property. And even if you manage to arrange it very quickly and get the mortgage approved before the auction, it might be a waste of time and money if the auctioneer doesn't accept your offer price, and still wants it to go to auction. That would be a very expensive several-thousand-pound waste. The other buyer was gobsmacked. I just filed that away as "very useful to know", otherwise known as "I see now that you can't buy at auction unless you have another property or you have expensive bridging finance already" or, "so that's why everyone at the auction had grey hair, they all own properties already".
Interestingly, I got a concrete "reason" from one of the banks on why even the smallest of personal loans was declined. It seems I have access to too much unsecured credit comparative to my income (regardless of the fact it's basically unused). This was a huge surprise I must admit, because the credit rating companies all tell you that a larger limit makes you look more trustworthy, so accordingly, I had accepted every limit increase I was offered. But oh well, another "useful to know" tidbit. When I'm ready to look at a mortgage I'll close all the cards bar a single one with a £100 limit, or something.
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