Buying a property at auction is both exhilarating and nail-biting; above all, it is uncertain. Canny buyers have long been able to snap up exceptionally good deals. Sellers tend to be committed, and some properties are priced well below market value.
If your capital is tied up in existing properties, auction finance is a logical solution, allowing you to add to your portfolio.
Property bought at auction typically needs to be purchased within 28 days of a successful bid, and you usually need to put a deposit down on the day. In the majority of cases, this tight time-frame means mainstream financing is not a viable option, as it is very difficult to get the funds together in time.
Auction finance is a flexible product that can be tailored to suit individual needs. Generally, you will have an agreement in principle in place before you put your hand up to place a bid. Before the hammer falls, you should have an idea of budget and criteria. It is important to seek advice early on in the process to gauge how ambitious your plans are.
Both experienced property developers and those who are new to the game can secure auction finance, although the latter will involve added security.
Plenty of smaller lenders specialise in this sector, and some are able to advance loans within a few days. In return for speed, you pay similar rates to those charged for bridging products.
We have a huge amount of experience in this area, and advise getting in touch as early on in the process as possible. That way, we can help you put auction finance in place in time for you to snap up those amazing deals.