If you’re looking to buy a property at auction then you may need auction finance. Arranging a mortgage for a property takes time. There are many hoops to jump through, lots of paperwork and checks to be done. When buying at auction, time is of the essence. This is where auction finance comes in.
It does vary by lender but generally you can purchase all types of property and land. This includes residential, commercial, buy to let, development land, property renovation and new build projects.
The nature of buying at auction means you need to move quickly. You bid on the day and at the fall of the gavel you will enter a non-negotiable binding contract to complete on the property. With a typical residential mortgage it is a timely process which includes pre-purchase surveys – the type of survey will depend on the level of information that you want before exchanging. It can also be a pre-requisite by the lender if the property is old and / or in a dilapidated condition. They need to make sure their investment is secure.
With auction properties there is often no time to carry out these surveys. Sometimes you may have only had one look around the property before bidding. Auction Finance is a ‘fast-track’ way of securing a loan to buy property at auction.
Typically, LTV up to 75% but it does vary. Our experienced auction loan team can discuss this with you.
As this is a short term measure the lending period is usually around 12 months. This gives you ample time to sort out a longer term mortgage or financial arrangement for your property purchase.
Looking for another type of loan? As we are whole of market loan advisors we can find you the loan that is right for you with the most competitive interest rate.
Our professional team very much look forward to assisting you with your loan requirements.
Click below to get the only credit report that checks data from three credit agencies
At Bradgate FS we aim to make choosing and applying for a mortgage, protection, or insurance as stress-free as possible.