Auction Property Finance
Auction property finance is a facility to provide a short term bridging loan to assist in the purchase of property bought at auction. Due to the nature of Auction property you have to complete on the sale quite quickly after you have outbid your rivals on auction day which makes Bridging Finance an attractive option for many as it takes a lot of the stress away.
The time period for completion is usually 21 to 28 days to complete and you have to typically put down a 10% deposit immediately after the auction of that property has finished. Each auction house works slightly differently so it is best to check how things work before you start bidding.
Unless you are a cash buyer Bridging Finance is often used to purchase the property whilst the mainstream mortgage is going through a fairly lengthy underwriting process which includes having a survey done for mortgage purposes as a minimum and all of the legal checks completed. Your circumstances and the type of property you bid on as well as your plans for the property will determine which lender will lend you the money. Our mortgage broker will guide you on your eligibility for finance and give you the low down on lenders and which properties they like to lend on. For instance, some mortgage lenders will not lend on high rise flats and those that do may insist on the property being made from brick rather than concrete and cap lending to a certain amount of stories.
It makes perfect sense to speak to us as your Bridging Finance Specialists and Mortgage Adviser before you go to the Auction and have a decision in principle done to make sure you can get the money should you succeed on auction day. We work with around 28 Bridging Loan providers and our mortgage advisers are “whole of market” advisers so we can get you the best overall deal with the lowest payments and the best exit terms.
020 7 193 1384