Auction Bridging Finance
If you are buying a property at auction you need to know that you can complete on the sale and have a secure source of finance behind you. At Choice Loans we specialise in rapidly arranging Auction Bridging finance for our customers and have been doing so for several years. A brief outline of how the procedure work when you are buying a property using bridging finance at auction is as follows:
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Before going to auction it is important to understand what Auction Bridging Finance is available to you. The last thing you want to do is buy a property and then find you are unable to raise sufficient finance, thereby forfeiting your deposit. Talk to us in advance and we will make you aware of your options. A few important things to consider are
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A Maximum of 75% LTV is available BUT if you have other properties that can be added as security you can borrow up to 100% of the price of the property you wish to buy at auction.
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For land the percentages are lower. Talk to us for details
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Finance can be raised either on your existing property until it is sold (to pay off the Auction Bridging Finance) or raised on the valuation of the new property you are buying (and be paid off either when you sell or refinance into a mortgage) or a mixture of both.
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Interest rates are calculated on a month basis with rates from 0.75-1.75%
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There will also be some up front Arrangement fees as well as Legal and valuation fees
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All your upfront charges and interest payments can, if you wish, be rolled up to the end of the loan so you have nothing to pay until the redemption date
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On the day of the auction you will require a deposit (usually 10%) that is non-refundable and needs to be paid on the day the sale is agreed. This transaction is effectively the Exchange date
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Completion won't occur until about 28 days later and it is within this time frame that you have to arrange your Auction bridging finance. This is where we will be able to assist you by selecting the most reliable lenders at the best rates. NB It's not all about the best rate; flexible terms and being certain the Lender is reliable and has funds available on the completion day without letting you down is also vital. We can help you with this.
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In this period lenders will conduct their surveys and valuations to ensure they are comfortable lending against the property
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We deliver a rapid service for supplying auction Bridging finance so will deal with lenders that specialise in quick completions to ensure your money is available in time for completion.
At Choice Loans we will guide you through this process and make sure your Auction Bridging finance is arranged at the best terms for you. Please note that the "best terms" does not always mean the "best rate". Where appropriate we will advise you on options that may be more flexible, more reliable and give you greater long term benefits than just a cheap interest rate. Ultimately though the decision will be yours and we will merely present options and make recommendations.
As well as dealing with all the major UK Bridging Loan Lenders we also speak to niche and even some private Lenders who lend exclusively through us. This ensures that as an independent broker we can give you the widest choice of Auction Bridging finance options available. Loans start at £5,000 and can also be raised for several million.
To begin your application please contact us with an outline of what you require. Ideally you can fill in the form opposite so we have a good starting knowledge of your needs or, if you prefer, just call us on 0845 1260350. We look forward to helping you with your Auction Bridging Finance deal.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Auction Bridging Finance and bridgng loans
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