When buying property at auction, you need to be prepared to move quickly when it comes to financing, as the timescale to completion is much shorter than with a traditional property purchase.
You will need a specialist lender that provides short-term finance to auction buyers. At Austin Gray Auction House Sussex, we work with two specialist suppliers who can provide short term finance, bridging loans, commercial finance, buy-to-let mortgages, and secured loans.
Specialist lenders can provide funds extremely quickly, so it fits neatly into your auction purchasing timescales and allows you to secure the property in the interim whilst arranging a mortgage. These loans are secured against the property being purchased, or other property assets, and usually means that borrowing can often be confirmed within hours.
A bridging loan is designed to help you buy a property before selling an existing one. Auction finance can be made available for home buyers, landlords, property investors and small businesses. Specialist lenders are usually very flexible about the types of property you are looking to purchase and the circumstances of your purchase.