Guaranteed a better offer with Confident Bidding
In the overheated housing market, an increasing number of homebuyers feel forced to make offers without a financing contingency. However, this is not without risk. Would you like to place an offer without a financing condition but avoid financial risk? Then Confident Bidding might be just what you need!
What is Confident Bidding?
Confident Bidding is an insurance product provided by the insurer BNP Paribas. It covers the 10% deposit of the purchase price that you must pay to the seller if you are unable to secure your mortgage. This allows you to place an offer without a financing condition, risk-free, giving you a better chance of securing your dream home.
Your mortgage advisor will be happy to assist you in arranging the Confident Bidding insurance.
Making an offer without a financing condition
In today's housing market, bidding above the asking price has become the norm rather than the exception. This often places buyers in a challenging position. On top of this, making an offer without a financing contingency is becoming increasingly common. The risk, however, is that if your mortgage application is ultimately unsuccessful, you will still be required to pay the deposit. This deposit is 10% of the purchase price—often tens of thousands of pounds.
At De Hypotheker, we recommend always including a financing contingency when making an offer on a property. If you’re considering making an offer without one, we strongly advise booking a (no-obligation) appointment with De Hypotheker for a thorough review of your financial situation.
If, after this, you still wish to make an offer without a financing contingency, Confident Bidding could be the right solution for you.
How does Confident Bidding work?
1
Intake
Intake
During an intake meeting, you as the client gain insight into the steps needed to realise your plans. The client receives information about the costs and next steps required to come to an advice. All wishes and objectives are discussed here.
2
Assessment
Assessment
Based on a detailed assessment of your information, your mortgage advisor evaluates your current financial situation. Together, you discuss what monthly amount you want and are able to pay for a home, and how much of your own funds you want to contribute. In addition, your advisor assesses whether the Bieden met Zekerheid (Offer with Certainty) guarantee fits your situation.
3
Calculation monthly costs
Calculation monthly costs
Your advisor calculates what the monthly costs of your desired home will be. He takes possible risk scenarios into account. He includes any insurance solutions and makes this clear to you.
4
Valuation of the property
Valuation of the property
In addition to this calculation, a valuation of the property is also required once you have found your dream home. Your advisor helps request the valuation. The advisor helps you apply for the Bieden met Zekerheid certificate with BNP Paribas.
5
Confident Bidding Certificate
Confident Bidding Certificate
Based on your information, you will receive a certificate from BNP Paribas that allows you to make a secured offer on your dream home. You use this when you want to make an offer without a financing contingency.
6
Place a bid with confidence!
Place a bid with confidence!
If your offer is accepted but your mortgage is ultimately not approved, BNP Paribas will not claim back the deposit. By taking out the Bieden met Zekerheid guarantee, your financial risk is therefore reduced.
Frequently asked questions
How much does the Confident Bidding insurance cost?
The premium for this insurance is €675. The Confident Bidding insurance is always taken out in combination with a bank guarantee. In addition to the premium, you will also pay 1% of the guarantee amount. These costs will be settled with the notary.