Buying property at auction may speed up the buying process, let you pay a lower price, or give you the opportunity to purchase an unusual property.
UK property auctions move fast. Buyers must pay in full within a time frame that’s usually too short to get a traditional property loan. So, if you don’t have the cash to pay upfront, how can you buy at auction? The answer is Auction Finance – a fast and simple bridging loan that lets you buy with confidence at auction, then gives you time to re-sell for a profit or secure a long-term mortgage. Don’t miss out on bargains. Use an auction loan to be a winner when the hammer falls.
Auction Finance is a type of bridging loan used to buy residential or commercial property at auction. Because auction houses usually require payment in full within 14 or 28 days of purchase (56 days if bought online), it can be difficult for some buyers to arrange a traditional property loan within this short time frame. Auction finance can cover this gap for 1 to 24 months, allowing the borrower to pay the auction house according to their rules, and sufficient time to re-sell the property or arrange a long-term mortgage to replace the auction loan.
All auction finance is essentially the same: A lender provides short-term funds to pay the auction house, then the buyer repays the lender by either re-selling the property or replacing the auction loan with a traditional residential or commercial mortgage.
However, depending on their available cash, the buyer may choose from two types of auction finance to pay the necessary deposit:
In all cases, auction finance is more expensive than traditional property loans.
Auction finance can be used to buy a variety of UK properties:
The properties may be used by the buyer in different ways:
Yes, although standard bridging loans can take much longer to arrange. Because of the tight time constraints, auction finance uses the purchase price of the property as the valuation and does not require an independent audit. This makes it faster to secure the borrowing buyers need.
The key features of auction finance:
Auction Finance is based on the value of the purchased property. This means there is greater consideration of the value of the property than the buyer’s income or credit status. Bad and poor credit scores can be accepted.
Even though auction finance is based on the value of the purchased property, the borrower must still meet the following demands:
Whether you’re buying UK property for a place to live, to use for your own business, or you’re seeking to re-sell for a profit or rent out the property, buying at auction can be a great way to benefit from real estate. No matter if you’re a first-timer or a seasoned professional, Swoop has you covered. Contact us today to secure the auction finance that suits your buying needs.
Swoop was amazing! I was looking for refinancing and they were straight onto finding me the best possible option. I would highly recommend them.
Owner, F45 Cambridge
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