Buying a property at auction is usually through Bridging Finance as you normally have 28 days to complete on the purchase. Lenders will find it very difficult to get the mortgage agreed and paid out within such a short period of time. We can take away the uncertainty by agreeing to the finance before you bid. All we need is your personal details, the auction house and lot number, along with your maximum bid. If you don’t have time before the auction, contact us once your bid has been accepted.
POINTS TO CONSIDER WHEN LOOKING FOR AUCTION FINANCE
- Term of the mortgage, as often lower rates are quoted for shorter terms but if you don’t repay on time the rates can be much higher;
- Does the lender require a valuation as not all lenders do;
- Can your solicitors be instructed the same day or can you use the lender’s solicitors to save you time;
- What level of refurbishment will the lender accept ;
- Don’t just focus on the interest rate. Add all the costs up to compare one lender to another;
- If using a broker ensure they fully understand bridging and don’t go through a third party. This will increase the costs and be slower;
- What happens if you are late when repaying the loan? Some lenders are flexible others will be in court to repossess before you know it;
- What is your exit, what is your Plan B, C etc. Work on this before you apply for the loan.
- 1-24 month options;
- Up to 75% of purchase price;
- Up to 100% finance with additional security;
- Choice of daily or monthly interest rates;
- Fee-free options.