More and more auction buyers are turning to specialist sources of finance to assist with their purchase, and improvements and further works needed for the properties they buy. Most traditional lenders no longer fund small scale property refurbishment, following lending policy reviews and revisions to their lending criteria.
These changes have caused regular auction buyers to revise their arrangements and seek alternatives.
Auction House has teamed up with two leading bridging finance lenders who can make available quick turnaround funds for auction.
Purchasers can be agreed before, during or after the auction so the necessary finance is available in time for completion.
Bridging Finance is a short term loan taken out by people to buy a property in advance of securing long term finance. It is offered by specialist lenders usually from their own funds and secured as a first charge on the property being purchased.
The two lenders that Auction House work closely with are Auction Finance Limited and Bridging Finance Solutions Limited.
Our two specialist lenders like to deal direct by phone, or in person at the auction. You will be assigned a professional and experienced case manager to handle the process and all of your requirements from initial enquiry right through to loan completion.
They do not require business plans or cash flow forecasts. Their loans are granted against the value of a property and secured against it. And they are open minded about credit history.
They aim to provide a full decision in principle on the same day as they receive your enquiry, along with fully detailed terms for the particular loan. For a willing client with a supportive solicitor they can normally complete and provide within a week from initial enquiry.
Each loan is assessed on its individual merits and can be tailored to meet specific requirements. Their overall fee packages are competitive in the market and all terms will be detailed on their offer letters.
For most borrowers the process starts before auction day with the completion of an Application Form - you can do this online or by ringing one of our specialist lenders. Click for Auction Finance or for Bridging Finance Solutions or get a quote from them both. You can apply for specialist lending post auction if you are successful as there should still be time to complete within the 28 days completion period. A 7-10 day turnaround is normal but it can be faster if needs must.
Bridging Finance Solutions or Auction Finance can give you an 'in principle' answer on the same day as your application is received, which will be based on your indication of the property's value. They will confirm the terms and provide you with a written Loan Illustration and a seven working day period for acceptance.
Simply sign and return the acceptance authorising Bridging Finance Solutions or Auction Finance to instruct a paid valuation of the property; this, which will advise on its suitability as security for the required borrowing facilities. If time permits you can choose to have the valuation prior to auction, or wait until after you have been successful in the auction room.
After a successful valuation Bridging Finance Solutions or Auction Finance will write to you with a Formal Offer of Finance. After written acceptance is received from you they will reserve the funds for your purchase.
They will liaise with your solicitor from successful bid through to legal completion of your purchase, provide all the legal documents required for release of funds and to secure a First Charge over the property.
The last step is to prepare for the long term financing of the property after improvements have been made, or it has been let. We suggest that you embark on this process as soon as you are able. Auction House will endeavour to assist in this process if required.
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