Do you have any advice for buying property at an auction with the intention of letting it out? I do not know at this stage how much work would need to be done but I am hoping for a house that just needs a lick of paint rather than a big refurbishment. Can I get a buy to let mortgage in principal even though I do not know yet which house I will buy?
Firstly, it’s imperative that you do lots of research beforehand on any property you intend to bid for at auction. Make sure that you have visited the property and have read the legal pack to understand the entire scenario. It is possible to get a buy to let mortgage for properties purchased at auction but because the process has to be completed in 28 days, I recommend that you get a broker to help you. Brokers can sound out possible lenders and get the wheels in motion pre-auction. Where it’s not possible (or appropriate) to get a buy to let mortgage, your broker can arrange for bridging finance which will enable you to complete the purchase quickly, then you can refinance onto a buy to let mortgage afterwards.
1st January 0001