Bank Repossessed Houses for Sale – What To Look For?

There are thousands of bank repossessed houses for sale available to purchase every day of the year, but just occasionally a larger number than usual will hit the auction houses. On average, 600-700 properties are repossessed throughout the UK each month, and with weekly or bi-weekly property auctions taking place there is always something of interest to buy.

When should you look for extra special deals though? Are there specific times of the year when the number of bank repossessed houses for sale goes up?

In the Second Quarter of the Year

The months of April, May and June see a lot of new repossessions being registered with property auction houses. This is because the overspending associated with Christmas starts to catch up with individuals by the second quarter of the year, and a lot of mortgage lenders will only accept 3-6 months of mortgage arrears before they start repossession proceedings.

If you are looking for bank repossessed houses for sale and you want a quick purchase then your local property auction is the place to be. May and June are often the best months to find a bargain but be aware that hundreds of other buy to let landlords will also know about the potential of these months, and it could be that competition for the properties make them more expensive than usual. In other words, there may be more choice but that doesn’t mean they’re better bargains.

Five to Six Months After Significant Interest Rate Increases

As a buy to let landlord the rental income from your property will undoubtedly cover your mortgage payments on the property even in the event of a significant increase in the interest rate. Unfortunately a lot of homeowners don’t have this financial buffer, and even a small increase in their mortgage interest rate can spell disaster.

Taking into account the time lag between mortgage arrears becoming apparent and the announcement of an intention to repossess the property, it is normal to see an increase in the number of bank repossessed houses for sale approximately five to six months after a rise in interest rates. This of course isn’t always the case and the extent to which the number of repossessions increases is dependent on the size of the interest rate rise. It also depends on whether the interest rate stays high or falls back to a more manageable level.

In Summary

It isn’t difficult to find bank repossessed houses for sale at very reasonable prices throughout the year. There are a few times however when the selection of available houses increases dramatically. You can choose to wait for these extra auspicious times or you can research the available market when you are ready to buy and find repossessed properties that suit your needs and your budget.