Bridging Loan For Auction Property
When you buy a property at auction, you need to know that you have the funds available usually within 28 days of successful bidding, which is why you may need a bridging loan for auction property.
Call us today on 01702 619 221 to get your application started.
Need a decision today? No problem!
Give us a call on 01702 619 221 and we can get a same day decision in principle to take any uncertainty away. Leaving you to concentrate on bidding on your new property.
Once the hammer comes down at an auction and you are the highest bidder, you have normally at this stage entered into a legally binding contract with the auction house to purchase the property. The hammer and successful bid is like exchanging contracts in a standard property purchase.
Because of this binding contract it is imperative that you have the funds available in a timely fashion, you will normally have to pay a 10% deposit at the point of successful bid and this can be forfeit if you do not complete in time.
Where appropriate, a bridging loan can be used in the short term to complete the purchase and then allow you to refinance/ shuffle other assets to pay back the bridging loan.
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Amber Mortgage Solutions invite you to contact us on 01702 619 221. Alternatively, you are welcome to use our convenient quote form and we will respond to your questions promptly.
There are occasions where a standard mortgage is unlikely to be approved in time, in this case a bridging loan for auction property may well be the best option for you.
Bridging loans are a short term loan that can be used to purchase a property at auction, this is usually repaid either when the property is sold on (ideal for a quick turnaround for a renovate and move on property), or when the auction property is refinanced on to a more standard/ long term lending solution, i.e a mortgage.
Why Choose a Bridging Loan for Auction Property
A bridging loan can be arranged within days not weeks. This satisfies the 28 day payment terms of an auction property. We can normally achieve a decision in principle on the same day as the enquiry and then release the funds within days.
If you arrange your bridging loan before you attend the auction it is possible to source funds for your 10% deposit by securing it against another asset.
We may be able to secure 100% or more of the purchase price of the property to enable renovation works to be carried out. This will normally need an alternative security in the form of another asset.
To better enable us to assist you with your bridging loan auction property requirements please call us on 01702 619 221 so we can get your auction purchase financed.