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Property Auction Finance

Property Auction Finance –  or a Bridging Loan for Auction Property is a kind of short term loan. It can be best described as a temporary loan that “bridges the gap” in one’s finances until they either can repay the loan in its entirety or they can secure a more permanent form of finance.

Funds from Property Auction Finance can be released as soon as the same day as the application is made, as long as there is a sound enough repayment or exit plan. This means that Property Auction Finance is a perfect way of securing a short term solution to secure a property via auction in the interim and serve until a more permanent fix can be found.

Property Auction Finance is a short term high interest loan. Conversely, traditional mortgages commonly have a long-term repayment span of 15 to 30 years and so often have lower interest rates due to the duration of the repayment period.

Property Auction Finance is not the same as a mortgage and has a higher rate of interest, specifically because of the shorter repayment term which typically can range from 6 months up to around 24 months.

Property Auction Finance Explained

Property Auction Finance is also sometimes referred to as “Emergency Property Finance”, “Gap Financing” or “Interim Financing” and can be very useful when the property has been bought at auction. In such instances, you might need the money immediately to buy the property you have just purchased, and it may be that you might not yet have sold your current property.

So the result is that you require access to finances fast, which is where Property Auction Finance can help.

At Your Mortgage Options we are completely impartial and independent with access to the Whole of the Market. This means we’re able to place you with the right provider of a Bridging Loan for your property development project, or an Emergency Property Loan that is best suited to your needs and circumstances.

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Why Choose Us?

Whole of Market Access

There are several different types and providers of Property Auction Finance, so only looking at deals from one lender means you’re unlikely to end up with the best available option. Our specialist advisors have access to the whole of the market, including specialist products which are not available from high street lenders.

We Are On Your Side

We work entirely for you, across the whole of the market and not any of the lenders and so we will act solely in your best interests. Our brokers are completely whole of market, impartial and independent. So you can be sure that the product we recommend will be the best available option, tailored to suit your particular circumstances.

We Do All The Hard Work For You

At Your Mortgage Options  it’s our mission that we leave no stone unturned in our whole of market research for Property Auction Finance. We also assist with all the paperwork, and where appropriate, we can also help with solicitors and conveyancing.

We Consider Your Circumstances

We take our time and carefully assess your circumstances. This helps us to find the  Property Auction Finance to suit what you’re looking for, based on your requirements. Then we guide you through all of your options. Helping you to find the right Property Auction Finance.

Property Auction Finance FAQs

Property Auction Finance is available from a variety of lenders and range from around £25,000 to £25,000,000. Contact Us Today to discuss all Your Mortgage Options

Property Auction Finance can sometimes be processed very quickly, in timeframes typically ranging from as soon as the same day to a few weeks.

Yes, you may well be able to access Property Auction Finance with a less than perfect credit score. Lenders look for a sound exit strategy and the plans of how you are going to repay the loan within its term. Get in touch to speak to one of our experts today and we can help you with all you’ll need to know.

Property Auction Finance has a relatively high rate of interest and is a larger loan over a shorter term, ideal for “bridging the gap” for the short term. Whereas a mortgage is a low interest form of financing a home taken over a time frame of up to 30 years, so much better suited to longer terms.

Involving an independent mortgage advisor to discuss bridging loans for auction finance earlier on in the application process gives us more opportunity to help you and reduces the stress and disappointment of not being able to secure the finance that is specifically suited to your needs.

Property Auction Finance can be used by private individuals, property investors and companies wanting to purchase property or land at auction.

Commonly between 6 and 24 months, although really the right answer is “it depends.” Our job is to ensure that you find the right Property Auction Finance and place you with the right lender that’s best suited to your specific circumstances.

Property Auction Finance is typically a non-status loan. This is because bridging loans are secured against the property which you would fall back on if you’re unable to repay the loan amount when it becomes due.

Commonly across the board, lenders have arrangement fees of around 2% of the total cost of the loan. You don’t have to pay these in advance as they are typically deducted from the total amount that you are borrowing. So if you were to arrange a £100,000 Property Auction Finance then you would receive £98,000 as an advancement. To learn more, get in touch with our team today.

It’s standard practice when assessing Property Auction Finance that lenders will instruct a property surveyor to carry out an independent valuation of the property, and typically the fee for this must be covered by the borrower. This ensures that the property is worth enough to provide the security it needs to raise the bridging loan for property development and it also that the valuation of the property is accurate and realistic.

Yes. Legal fees will also need to be factored into the total cost of your Property Auction Finance both on the lender’s legal fees and your own solicitors’ also.

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