Tips to Financing an Auction Property Purchase
Buying a property at auction can be a fantastic way to find a real bargain - but when it comes to taking out a mortgage, the process isn't quite so simple!
The biggest challenge for auction property purchases is the timing.
Mortgages take time to apply for, with all the eligibility and affordability checks involved. This situation is where auction finance is worth its weight in gold, providing a short-term, fast turnaround loan to ensure you don't miss out on a dream purchase or end up losing your deposit.
In this guide, the mortgage brokers team explains how to finance an auction property investment and the ins and outs of this valuable borrowing option.
For more information, or to get your auction finance application started, get in touch at 0330 304 3040, or email the team at [email protected].
How Does Property Auction Finance Work?
In essence, an auction property loan is similar to a bridging loan - and often, the same product just applied differently.
The loan is short-term and repaid on an interest-only basis.
For buyers, the significant benefit is that it is speedy to arrange and takes a fraction of the time a regular mortgage application would - essential when you have a tight 28-day deadline before you lose your auction property!
Yes, the interest rates are higher than on a standard mortgage, but the idea is that the loan is refinanced quickly, but without the stress of urgency when there is a payment cut-off date looming.
2023-05-09 
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