Auction FinanceBuying at auction can be simpler than you think.
How does auction finance work?
It is standard for a 10% deposit to be paid on the day of the auction and the sale must be completed within 28 days of any successful bid. So whether you’re a first-time purchaser or a seasoned auction-goer, having a financial plan in place pre-auction is a key component to any successful purchase.
Arranging finance with a high-street bank will invariably take longer than this 28 day period. Working with a specialist provider who understands the timeframes involved will allow these deadlines to be met in a professional and timely manner.
Can anyone get auction finance?
As with any loan, lenders will have to carry out a number of affordability checks to ensure that you can cover the cost of the loan over the agreed timeframe. They will also take into account the value and potential of the property and ensure that a valid exit strategy is in place.
What is a valid exit strategy?
Examples of this are – the sale of the property, refinancing onto a conventional or buy-to-let mortgage or a cash redemption from another source.
Purchasing at auction
Research, forward planning and speed are integral elements when looking to purchase a property at an auction. And it’s vital to have all your finances in place before the hammer goes down.
Fortunately help is at hand. Fast Property Finance can support you in all your pre and post auction financial requirements to ensure that you can focus on maximising your property gains.
Need more help?
It’s always advisable to speak to a specialist to help understand if, and how, auction finance is right for you.
You can then be matched with the most appropriate solution to meet your borrowing requirements.
Contact us directly to find out more.
* On the rare occasion we have to match clients with an off-panel lender, a fee may be incurred.