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 Woongarant. 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?
Based on a comprehensive assessment of your details, your mortgage advisor will evaluate your current financial situation. Together, you will discuss how much you can and are willing to pay monthly for a property. Your will also determine whether the Confident Bidding insurance is suitable for your circumstances.
Next, the advisor will prepare an initial mortgage calculation, allowing Woongarant to determine your bidding capacity.
In addition to this preliminary calculation, a property valuation will be required once you’ve found your dream home. You can request this valuation together with your advisor and submit it to Woongarant.
Based on this information, Woongarant will issue a certificate that enables you to make a stronger offer on your dream property. This certificate can be used if you decide to place an offer without a financing contingency.
If your offer is accepted but your mortgage application ultimately falls through, Woongarant will not recover the deposit. By arranging a Confident Bidding insurance policy, you are therefore protected against financial risk.
Frequently asked questions
How much does the Confident Bidding insurance cost?
The premium for this insurance is €850. 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.